Insider Buying: The Sunland Group Limited (ASX:SDG) Non-Executive Director Just Bought 275% More Shares

Investors who take an interest in Sunland Group Limited (ASX:SDG) should definitely note that the Non-Executive Director, Vahid Saberi, recently paid AU$2.20 per share to buy AU$257k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 275%, potentially signalling some real optimism.

Check out our latest analysis for Sunland Group

The Last 12 Months Of Insider Transactions At Sunland Group

Notably, that recent purchase by Vahid Saberi is the biggest insider purchase of Sunland Group shares that we've seen in the last year. That implies that an insider found the current price of AU$2.23 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Sunland Group insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid AU$436k for 248.25k shares. But they sold 50.00k shares for AU$81k. Overall, Sunland Group insiders were net buyers during the last year. They paid about AU$1.76 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Sunland Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sunland Group insiders own 26% of the company, worth about AU$76m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Sunland Group Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Sunland Group we think they are probably pretty confident of a bright future. 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. To help with this, we've discovered 5 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Sunland Group.

But note: Sunland Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, 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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