Have Insiders Sold Sequoia Financial Group Shares Recently?

Anyone interested in Sequoia Financial Group Limited (ASX:SEQ) should probably be aware that a company insider, Brent Jones, recently divested AU$551k worth of shares in the company, at an average price of AU$0.37 each. The eyebrow raising move amounted to a reduction of 17% in their holding.

See our latest analysis for Sequoia Financial Group

The Last 12 Months Of Insider Transactions At Sequoia Financial Group

Notably, that recent sale by insider Brent Jones was not the only time they sold Sequoia Financial Group shares this year. They previously made an even bigger sale of -AU$1.8m worth of shares at a price of AU$0.41 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$0.35). So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 1.63m shares for AU$809k. But they sold 5.87m shares for AU$2.4m. Brent Jones divested 5.87m shares over the last 12 months at an average price of AU$0.40. The chart below shows insider transactions (by companies and 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Sequoia Financial Group Boast High Insider Ownership?

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. Sequoia Financial Group insiders own about AU$9.5m worth of shares. That equates to 22% of the company. 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 Sequoia Financial Group Tell Us?

The insider sales have outweighed the insider buying, at Sequoia Financial Group, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. For example, Sequoia Financial Group has 4 warning signs (and 2 which shouldn't be ignored) we think you should know about.

But note: Sequoia Financial Group 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.