Have Sirius Real Estate Insiders Been Selling Stock?

We wouldn't blame Sirius Real Estate Limited (LON:SRE) shareholders if they were a little worried about the fact that Andrew Coombs, the CEO & Executive Director recently netted about UK£451k selling shares at an average price of UK£0.90. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.3%.

See our latest analysis for Sirius Real Estate

Sirius Real Estate Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Investment Officer, Alistair Marks, for UK£849k worth of shares, at about UK£0.85 per share. That means that an insider was selling shares at around the current price of UK£0.85. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

In the last twelve months insiders purchased 121.14k shares for UK£99k. On the other hand they divested 1.50m shares, for UK£1.3m. All up, insiders sold more shares in Sirius Real Estate than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sirius Real Estate insiders own about UK£17m worth of shares. That equates to 1.8% of the company. 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 Does This Data Suggest About Sirius Real Estate Insiders?

The stark truth for Sirius Real Estate is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. For instance, we've identified 4 warning signs for Sirius Real Estate (1 is concerning) you should be aware of.

But note: Sirius Real Estate 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 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.