Are Insiders Selling Super Retail Group Limited (ASX:SUL) Stock?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Super Retail Group Limited (ASX:SUL), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Super Retail Group

Super Retail Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Group MD, Anthony Heraghty, sold AU$163k worth of shares at a price of AU$10.80 per share. So we know that an insider sold shares at around the present share price of AU$10.09. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Anthony Heraghty was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 15.00k shares for AU$129k. But insiders sold 15.10k shares worth AU$163k. 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!

I will like Super Retail Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Super Retail Group Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Super Retail Group. In that time, Group MD Anthony Heraghty dumped AU$163k worth of shares. On the other hand we note Independent Non-Executive Director Sally Chaplain bought AU$50k worth of shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership of Super Retail Group

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Super Retail Group insiders own 31% of the company, worth about AU$704m. 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 Super Retail Group Tell Us?

Unfortunately, there has been more insider selling of Super Retail Group stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 3 warning signs for Super Retail Group that deserve your attention before buying any shares.

But note: Super Retail 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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