Have Insiders Sold Super Retail Group Shares Recently?

We wouldn't blame Super Retail Group Limited (ASX:SUL) shareholders if they were a little worried about the fact that Anthony Heraghty, the Group MD recently netted about AU$1.8m selling shares at an average price of AU$17.55. That's a big disposal, and it decreased their holding size by 21%, which is notable but not too bad.

View our latest analysis for Super Retail Group

Super Retail Group Insider Transactions Over The Last Year

In fact, the recent sale by Anthony Heraghty was the biggest sale of Super Retail Group shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$17.43. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid AU$521k for 39.98k shares. But they sold 104.00k shares for AU$1.8m. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Super Retail Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Super Retail Group insiders own about AU$1.2b worth of shares (which is 30% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Super Retail Group Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Super Retail Group, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Super Retail Group has 2 warning signs and it would be unwise to ignore them.

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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 of direct interests only, but not derivative transactions or indirect interests.

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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.