James Ogden Is The Non-Executive Independent Director of Summerset Group Holdings Limited (NZSE:SUM) And They Just Sold 84% Of Their Shares

Some Summerset Group Holdings Limited (NZSE:SUM) shareholders may be a little concerned to see that the Non-Executive Independent Director, James Ogden, recently sold a substantial NZ$2.6m worth of stock at a price of NZ$12.88 per share. That diminished their holding by a very significant 84%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Summerset Group Holdings

The Last 12 Months Of Insider Transactions At Summerset Group Holdings

In fact, the recent sale by James Ogden was the biggest sale of Summerset Group Holdings shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of NZ$13.00, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 84% of James Ogden's stake.

All up, insiders sold more shares in Summerset Group Holdings than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Summerset Group Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 2.2% of Summerset Group Holdings shares, worth about NZ$64m. 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 Summerset Group Holdings Insiders?

An insider sold Summerset Group Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Summerset Group Holdings is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Summerset Group Holdings (2 make us uncomfortable!) that we believe deserve your full attention.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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