Simon Property Group, Inc. (NYSE:SPG) shareholders (or potential shareholders) will be happy to see that the Chairman, David Simon, recently bought a whopping US$9.1m worth of stock, at a price of US$60.83. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.
The Last 12 Months Of Insider Transactions At Simon Property Group
Notably, that recent purchase by David Simon is the biggest insider purchase of Simon Property Group shares that we’ve seen in the last year. That means that even when the share price was higher than US$55.74 (the recent price), an insider wanted to purchase shares. It’s very possible they regret the purchase, but it’s more likely they are bullish about the company. To us, it’s very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 268.07k shares worth US$15m. On the other hand they divested 9160 shares, for US$1.6m. In total, Simon Property Group insiders bought more than they sold over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Simon Property Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Simon Property Group
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of Simon Property Group shares, worth about US$62m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Simon Property Group Insiders?
It’s certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Simon Property Group we think they are probably pretty confident of a bright future. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Simon Property Group (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
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