Insiders who bought this year lost AU$27k as Stockland (ASX:SGP) sheds AU$286m in value

The recent 3.3% drop in Stockland's (ASX:SGP) stock could come as a blow to insiders who purchased AU$169k worth of stock at an average buy price of AU$4.22 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$142k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Stockland

Stockland Insider Transactions Over The Last Year

The Non-Executive Director Laurence Brindle made the biggest insider purchase in the last 12 months. That single transaction was for AU$169k worth of shares at a price of AU$4.22 each. That means that even when the share price was higher than AU$3.55 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Laurence Brindle was the only individual insider to buy shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insider Ownership Of Stockland

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Stockland insiders own 0.1% of the company, worth about AU$11m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Stockland Insiders?

It doesn't really mean much that no insider has traded Stockland shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Stockland insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stockland. Be aware that Stockland is showing 4 warning signs in our investment analysis, and 2 of those are concerning...

Of course Stockland may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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. 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.