Have Insiders Sold Summerset Group Holdings Shares Recently?

Anyone interested in Summerset Group Holdings Limited (NZSE:SUM) should probably be aware that the Chief Executive Officer, Scott Scoullar, recently divested NZ$547k worth of shares in the company, at an average price of NZ$10.95 each. The eyebrow raising move amounted to a reduction of 10% in their holding.

We've discovered 4 warning signs about Summerset Group Holdings. View them for free.

Summerset Group Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Scott Scoullar is the biggest insider sale of Summerset Group Holdings shares that we've seen in the last year. That means that an insider was selling shares at below the current price (NZ$11.20). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 10% of Scott Scoullar's holding.

Scott Scoullar ditched 55.00k shares over the year. The average price per share was NZ$10.78. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See 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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Summerset Group Holdings insiders have about 0.2% of the stock, worth approximately NZ$6.3m. We prefer to see high levels of insider ownership.

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

An insider hasn't bought Summerset Group Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. Be aware that Summerset Group Holdings is showing 4 warning signs in our investment analysis, and 1 of those is significant...

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.

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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.