10% Of This Summerset Group Holdings Insider's Holdings Were Sold

Insiders were net sellers of Summerset Group Holdings Limited's (NZSE:SUM ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The Last 12 Months Of Insider Transactions At Summerset Group Holdings

The Chief Executive Officer, Scott Scoullar, made the biggest insider sale in the last 12 months. That single transaction was for NZ$547k worth of shares at a price of NZ$11.00 each. That means that even when the share price was below the current price of NZ$11.87, an insider wanted to cash in some shares. 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. 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. This single sale was just 10% of Scott Scoullar's stake. The only individual insider seller over the last year was Scott Scoullar.

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!

Check out our latest analysis for Summerset Group Holdings

I will like Summerset Group Holdings 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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Summerset Group Holdings insiders have about 0.2% of the stock, worth approximately NZ$6.7m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Summerset Group Holdings Tell Us?

It doesn't really mean much that no insider has traded Summerset Group Holdings shares in the last quarter. We don't take much encouragement from the transactions by Summerset Group Holdings insiders. And we're not picking up on high enough insider ownership to give us any comfort. 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. Every company has risks, and we've spotted 3 warning signs for Summerset Group Holdings (of which 2 shouldn't be ignored!) you should know about.

But note: Summerset Group Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.