Superior Group of Companies Falls To US$8.48, But Insiders Sold At Lower Price

Even though Superior Group of Companies, Inc. (NASDAQ:SGC) has fallen by 10% over the past week , insiders who sold US$138k worth of stock over the past year have had less luck. Given that the average selling price of US$11.46 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

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Superior Group of Companies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Director, Andrew Demott, for US$138k worth of shares, at about US$11.46 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$8.48. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Andrew Demott.

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 Superior Group of Companies

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Superior Group of Companies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Superior Group of Companies insiders own about US$25m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Superior Group of Companies Insider Transactions Indicate?

The fact that there have been no Superior Group of Companies insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Superior Group of Companies insiders. But we do like the fact that insiders own a fair chunk of the company. 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. Our analysis shows 3 warning signs for Superior Group of Companies (2 are potentially serious!) and we strongly recommend you look at these before investing.

But note: Superior Group of Companies 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.