Whilst it may not be a huge deal, we thought it was good to see that the SEGRO Plc (LON:SGRO) Independent Non-Executive Director, Linda Yueh, recently bought UK£60k worth of stock, for UK£12.70 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At SEGRO
In the last twelve months, the biggest single sale by an insider was when the CEO & Executive Director, David John Sleath, sold UK£1.0m worth of shares at a price of UK£10.02 per share. That means that an insider was selling shares at slightly below the current price (UK£12.58). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 13% of David John Sleath's holding. David John Sleath was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 5.85k shares worth UK£70k. On the other hand they divested 104.35k shares, for UK£1.0m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of SEGRO
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. Insiders own 0.2% of SEGRO shares, worth about UK£28m. 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 Do The SEGRO Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but SEGRO insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for SEGRO (1 is concerning!) and we strongly recommend you look at them before investing.
But note: SEGRO 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.
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.
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