We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Safety, Income & Growth Inc. (NYSE:SAFE).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Safety Income & Growth Insider Transactions Over The Last Year
Geoffrey Jervis made the biggest insider purchase in the last 12 months. That single transaction was for US$550k worth of shares at a price of US$16.26 each. That implies that an insider found the current (approximate) price enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. In any event it’s generally a positive if insiders are buying shares at around the current price.
Happily, we note that in the last year insiders paid US$1.8m for 104.10k shares. But insiders sold 2.90k shares worth US$48k. In total, Safety Income & Growth insiders bought more than they sold over the last year. Their average price was about US$17.35. Although they bought at below the recent price of US$17.58 per share, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Safety Income & Growth better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Safety Income & Growth Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Safety Income & Growth insiders own 1.8% of the company, worth about US$6.0m. Whilst better than nothing, we’re not overly impressed by these holdings.
What Might The Insider Transactions At Safety Income & Growth Tell Us?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. However, our analysis of transactions over the last year is heartening. The transactions are fine but it’d be more encouraging if Safety Income & Growth insiders bought more shares in the company. Of course, the future is what matters most. So if you are interested in Safety Income & Growth, 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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.