Don't Ignore The Fact That This Insider Just Sold Some Shares In Steadfast Group Limited (ASX:SDF)

We'd be surprised if Steadfast Group Limited (ASX:SDF) shareholders haven't noticed that the Co-Founder, Robert Kelly, recently sold AU$478k worth of stock at AU$4.78 per share. However, the silver lining is that the sale only reduced their total holding by 3.1%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Steadfast Group

The Last 12 Months Of Insider Transactions At Steadfast Group

Notably, that recent sale by Co-Founder Robert Kelly was not the only time they sold Steadfast Group shares this year. They previously made an even bigger sale of -AU$1.5m worth of shares at a price of AU$5.00 per share. That means that an insider was selling shares at around the current price of AU$4.74. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 124.85k shares for AU$585k. But insiders sold 391.00k shares worth AU$1.9m. Robert Kelly divested 391.00k shares over the last 12 months at an average price of AU$4.94. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Steadfast Group Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Steadfast Group insiders own 1.4% of the company, worth about AU$63m. 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 Do The Steadfast Group Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Steadfast Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Steadfast Group makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Steadfast Group.

Of course Steadfast Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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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.