Despite Hitting US$11.85, InterGroup Insiders Still Sold Too Soon

The InterGroup Corporation's (NASDAQ:INTG) value has fallen 11% in the last week, but insiders who sold US$149k worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$14.25 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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InterGroup Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, John Love, for US$149k worth of shares, at about US$14.25 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$11.85. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was John Love.

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!

View our latest analysis for InterGroup

I will like InterGroup 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 Of InterGroup

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that InterGroup insiders own 71% of the company, worth about US$21m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The InterGroup Insider Transactions Indicate?

The fact that there have been no InterGroup insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of InterGroup, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that InterGroup is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant...

But note: InterGroup 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.