This Steadfast Group Insider Reduced Their Stake By 10%

From what we can see, insiders were net sellers in Steadfast Group Limited's (ASX:SDF ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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Steadfast Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Robert Kelly, for AU$2.0m worth of shares, at about AU$5.65 per share. That means that an insider was selling shares at slightly below the current price (AU$6.00). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 10% of Robert Kelly's holding. Robert Kelly was the only individual insider to sell shares in the last twelve months.

Robert Kelly divested 400.00k shares over the last 12 months at an average price of AU$5.66. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Steadfast Group

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Does Steadfast Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Steadfast Group insiders own about AU$316m worth of shares (which is 4.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Steadfast Group Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Steadfast Group insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Steadfast Group. For example - Steadfast Group has 3 warning signs we think you should be aware of.

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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.