This Insider Has Just Sold Shares In Saunders International

Some Saunders International Limited (ASX:SND) shareholders may be a little concerned to see that insider Timothy Burnett recently sold a substantial AU$1.2m worth of stock at a price of AU$0.77 per share. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Saunders International

Saunders International Insider Transactions Over The Last Year

Notably, that recent sale by Timothy Burnett is the biggest insider sale of Saunders International shares that we've seen in the last year. That means that even when the share price was below the current price of AU$0.84, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 27% of Timothy Burnett's holding.

Timothy Burnett ditched 2.67m shares over the year. The average price per share was AU$0.82. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Saunders International better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Saunders International

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 27% of Saunders International shares, worth about AU$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Saunders International Tell Us?

An insider hasn't bought Saunders International stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 4 warning signs for Saunders International that deserve your attention before buying any shares.

But note: Saunders International may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.