We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Safehold Inc. (NYSE:SAFE), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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The Last 12 Months Of Insider Transactions At Safehold
Over the last year, we can see that the biggest insider purchase was by President & Chief Investment Officer Marcos Alvarado for US$238k worth of shares, at about US$17.42 per share. We do like to see buying, but this purchase was made at well below the current price of US$28.32. But because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
In the last twelve months insiders purchased 23640 shares for US$412k. But they sold 2900 for US$48k. In the last twelve months there was more buying than selling by Safehold insiders. 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!
Safehold is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Safehold Boast High 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. From our data, it seems that Safehold insiders own 0.9% of the company, worth about US$7.9m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Safehold Insiders?
It doesn’t really mean much that no insider has traded Safehold shares in the last quarter. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Safehold insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Safehold, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.