Insiders Sold InterGroup Prematurely At US$50.00 With Stock Trading Higher \

Despite the fact that The InterGroup Corporation's (NASDAQ:INTG) value has dropped 11% in the last week insiders who sold US$450k worth of stock in the past 12 months have had less success. The average selling price of US$50.00 is still lower than the current share price, or in other words, insiders would have been better off holding on to 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.

Check out our latest analysis for InterGroup

InterGroup Insider Transactions Over The Last Year

The Independent Director, John Love, made the biggest insider sale in the last 12 months. That single transaction was for US$450k worth of shares at a price of US$50.00 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$36.00. So it may not shed much light on insider confidence at current levels. John Love was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Insider Ownership Of InterGroup

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. InterGroup insiders own 70% of the company, currently worth about US$55m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The InterGroup Insider Transactions Indicate?

It doesn't really mean much that no insider has traded InterGroup shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the InterGroup insiders selling. 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 4 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

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, 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.