SiteMinder Non-Executive Director Leslie Szekely Sells 90% Of Holding

We wouldn't blame SiteMinder Limited (ASX:SDR) shareholders if they were a little worried about the fact that Leslie Szekely, the Non-Executive Director recently netted about AU$85m selling shares at an average price of AU$6.10. Probably the most concerning element of the whole transaction is that the disposal amounted to 90% of their entire holding.

See our latest analysis for SiteMinder

The Last 12 Months Of Insider Transactions At SiteMinder

In fact, the recent sale by Leslie Szekely was the biggest sale of SiteMinder shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (AU$6.22). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 90% of Leslie Szekely's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like SiteMinder better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does SiteMinder Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. SiteMinder insiders own about AU$105m worth of shares. That equates to 6.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SiteMinder Insiders?

An insider hasn't bought SiteMinder stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For example - SiteMinder has 1 warning sign we think you should be aware of.

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 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.