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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Shopping Centres Australasia Property Group (ASX:SCP).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Shopping Centres Australasia Property Group
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director of Shopping Centres Australasia Property Group RE Limited, Anthony Michael Mellowes, for AU$1.3m worth of shares, at about AU$2.43 per share. That means that an insider was selling shares at slightly below the current price (AU$2.60). We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 39.9% of Anthony Michael Mellowes’s holding.
Happily, we note that in the last year insiders paid AU$135k for 54000 shares. But insiders sold 772k shares worth AU$1.9m. All up, insiders sold more shares in Shopping Centres Australasia Property Group than they bought, over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Shopping Centres Australasia Property Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own AU$7.2m worth of Shopping Centres Australasia Property Group stock, about 0.3% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About Shopping Centres Australasia Property Group Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. Our analysis of Shopping Centres Australasia Property Group insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Of course, the future is what matters most. So if you are interested in Shopping Centres Australasia Property Group, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.