Trade Alert: The Independent Non-Executive Director Of Scentre Group (ASX:SCG), Andrew Harmos, Has Sold Some Shares Recently

We'd be surprised if Scentre Group (ASX:SCG) shareholders haven't noticed that the Independent Non-Executive Director, Andrew Harmos, recently sold AU$306k worth of stock at AU$2.91 per share. Equally important, that sale actually reduced their holding by a full 72% which hardly makes us feel bullish about the stock.

Check out our latest analysis for Scentre Group

The Last 12 Months Of Insider Transactions At Scentre Group

Notably, that recent sale by Andrew Harmos is the biggest insider sale of Scentre Group shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$2.93. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was 72% of Andrew Harmos's holding.

Over the last year, we can see that insiders have bought 140.00k shares worth AU$291k. But insiders sold 105.00k shares worth AU$306k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Scentre Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Scentre Group insiders own 0.2% of the company, worth about AU$36m. 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 Scentre Group Insider Transactions Indicate?

An insider sold Scentre Group shares recently, but they didn't buy any. 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're in no rush to buy! 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. Our analysis shows 2 warning signs for Scentre Group (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.

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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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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