Anyone interested in The Macerich Company (NYSE:MAC) should probably be aware that the Independent Director, Steven Soboroff, recently divested US$354k worth of shares in the company, at an average price of US$17.72 each. Equally important, that sale actually reduced their holding by a full 66% which hardly makes us feel bullish about the stock.
Macerich Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Sharon Berger, for US$44m worth of shares, at about US$22.02 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$17.80). So it may not shed much light on insider confidence at current levels. Notably Sharon Berger was also the biggest buyer, having purchased US$28m worth of shares.
Over the last year we saw more insider selling of Macerich shares, than buying. The sellers received a price of around US$17.02, on average. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Macerich insiders own about US$151m worth of shares (which is 3.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Macerich Tell Us?
An insider sold Macerich shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 Macerich is showing 4 warning signs in our investment analysis, and 1 of those is potentially serious...
But note: Macerich 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.
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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