Have Insiders Sold Sanford Shares Recently?

Anyone interested in Sanford Limited (NZSE:SAN) should probably be aware that a company insider, Peter Reidie, recently divested NZ$167k worth of shares in the company, at an average price of NZ$3.82 each. In particular, we note that the sale equated to a 100% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Sanford

Sanford Insider Transactions Over The Last Year

Notably, that recent sale by Peter Reidie is the biggest insider sale of Sanford shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (NZ$3.94). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 100% of Peter Reidie's stake.

In total, Sanford insiders sold more than they bought over the last year. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. 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 7.7% of Sanford shares, worth about NZ$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Sanford Insiders?

The stark truth for Sanford 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sanford. Case in point: We've spotted 2 warning signs for Sanford you should be aware of.

But note: Sanford 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.