Have Insiders Sold Synlait Milk Limited (NZSE:SML) Shares Recently?

We note that a Synlait Milk Limited (NZSE:SML) insider, Chris France, recently sold NZ$55k worth of stock for NZ$5.51 per share. That might not be a huge sum but it was 51% of their personal holding, so we find it a little discouraging.

See our latest analysis for Synlait Milk

The Last 12 Months Of Insider Transactions At Synlait Milk

While no particular insider transaction stood out, we can still look at the overall trading.

Happily, we note that in the last year insiders paid NZ$61k for 9.78k shares. On the other hand they divested 10.00k shares, for NZ$55k. In the last twelve months there was more buying than selling by Synlait Milk insiders. They paid about NZ$6.19 on average. This is nice to see since it implies that insiders might see value around current prices (around NZ$5.58). You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Synlait Milk is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Synlait Milk 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. Synlait Milk insiders own about NZ$42m worth of shares. That equates to 3.5% 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 Do The Synlait Milk Insider Transactions Indicate?

An insider hasn't bought Synlait Milk stock in the last three months, but there was some selling. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Synlait Milk. Every company has risks, and we've spotted 3 warning signs for Synlait Milk (of which 1 makes us a bit uncomfortable!) you should know about.

But note: Synlait Milk 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.

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This article by Simply Wall St is general in nature. 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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