Anyone interested in EastGroup Properties, Inc. (NYSE:EGP) should probably be aware that the Executive VP & Head of Eastern Regional, John Coleman, recently divested US$441k worth of shares in the company, at an average price of US$136 each. However, the silver lining is that the sale only reduced their total holding by 3.3%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At EastGroup Properties
In fact, the recent sale by John Coleman was the biggest sale of EastGroup Properties shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$141. 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 3.3%of John Coleman's holding.
In the last year EastGroup Properties insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. EastGroup Properties insiders own 2.0% of the company, currently worth about US$109m 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 EastGroup Properties Insider Transactions Indicate?
Insiders haven't bought EastGroup Properties stock in the last three months, but there was some selling. And even if we look at 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. 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. At Simply Wall St, we've found that EastGroup Properties has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
But note: EastGroup Properties 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. 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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