Don’t Ignore The Fact That This Insider Just Sold Some Shares In EastGroup Properties, Inc. (NYSE:EGP)

Investors may wish to note that the Independent Director of EastGroup Properties, Inc., H. Bailey, recently netted US$56k from selling stock, receiving an average price of US$140. It wasn’t a huge sale, but it did reduce their holding by 11%. This does not instill confidence.

See our latest analysis for EastGroup Properties

The Last 12 Months Of Insider Transactions At EastGroup Properties

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Head of Eastern Regional, John Coleman, sold US$1.1m worth of shares at a price of US$111 per share. That means that even when the share price was below the current price of US$142, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 9.1% of John Coleman’s holding.

EastGroup Properties insiders didn’t buy any shares over the last year. You can see the insider transactions (by 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!

NYSE:EGP Recent Insider Trading, February 15th 2020
NYSE:EGP Recent Insider Trading, February 15th 2020

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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It’s great to see that EastGroup Properties insiders own 2.1% of the company, worth about US$113m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At EastGroup Properties Tell Us?

An insider sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. But it is good to see that EastGroup Properties is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Of course, the future is what matters most. So if you are interested in EastGroup Properties, you should check out this free report on analyst forecasts for the company.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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