Insiders at SuRo Capital Corp. (NASDAQ:SSSS) sold US$14m worth of stock at an average price of US$14.50 a share over the past year, making the most of their investment. After the stock price dropped 19% last week, the company's market value declined by US$82m, but insiders were able to mitigate their losses.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
SuRo Capital Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Robert Birch, sold US$7.5m worth of shares at a price of US$14.98 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$12.82). 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 Robert Birch.
Over the last year, we can see that insiders have bought 139.86k shares worth US$1.5m. On the other hand they divested 932.63k shares, for US$14m. Robert Birch sold a total of 932.63k shares over the year at an average price of US$14.50. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at SuRo Capital Have Bought Stock Recently
Over the last quarter, SuRo Capital insiders have spent a meaningful amount on shares. In total, insiders bought US$103k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does SuRo Capital Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that SuRo Capital insiders own 9.9% of the company, worth about US$34m. 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 SuRo Capital Insider Transactions Indicate?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by SuRo Capital insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, SuRo Capital has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
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