Have SEEK Insiders Been Selling Stock?

We wouldn't blame SEEK Limited (ASX:SEK) shareholders if they were a little worried about the fact that Andrew Bassat, the Co-Founder & Non-Executive Director recently netted about AU$5.0m selling shares at an average price of AU$24.90. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.5%.

Check out our latest analysis for SEEK

The Last 12 Months Of Insider Transactions At SEEK

In fact, the recent sale by Andrew Bassat was the biggest sale of SEEK shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (AU$24.94). 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. 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. This single sale was just 1.5% of Andrew Bassat's stake.

In the last twelve months insiders purchased 4.07k shares for AU$96k. On the other hand they divested 445.99k shares, for AU$11m. Over the last year we saw more insider selling of SEEK shares, than buying. They sold for an average price of about AU$24.02. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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 SEEK 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. SEEK insiders own 4.3% of the company, currently worth about AU$378m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At SEEK Tell Us?

Unfortunately, there has been more insider selling of SEEK stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.