Stock Analysis

How Much Are Tanger Factory Outlet Centers, Inc. (NYSE:SKT) Insiders Taking Off The Table?

  •  Updated
NYSE:SKT
Source: Shutterstock

It is not uncommon to see companies perform well in the years after insiders buy shares. 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 before you buy or sell Tanger Factory Outlet Centers, Inc. (NYSE:SKT), you may well want to know whether insiders have been buying or selling.

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.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Tanger Factory Outlet Centers

Tanger Factory Outlet Centers Insider Transactions Over The Last Year

The Senior Vice President of Construction & Development, Charles Worsham, made the biggest insider sale in the last 12 months. That single transaction was for US$112k worth of shares at a price of US$8.96 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$15.66. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 25% of Charles Worsham's stake. The only individual insider seller over the last year was Charles Worsham.

In the last twelve months insiders purchased 14.30k shares for US$82k. But they sold 12.50k shares for US$112k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:SKT Insider Trading Volume February 26th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Tanger Factory Outlet Centers insiders own 2.8% of the company, worth about US$45m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Tanger Factory Outlet Centers Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Tanger Factory Outlet Centers in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Tanger Factory Outlet Centers (including 1 which is potentially serious).

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’re looking to trade Tanger Factory Outlet Centers, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


What are the risks and opportunities for Tanger Factory Outlet Centers?

Tanger Factory Outlet Centers, Inc. (NYSE: SKT) is a leading operator of open-air upscale outlet shopping centers that owns, or has an ownership interest in, a portfolio of 38 centers.

View Full Analysis

Rewards

  • Trading at 24.3% below our estimate of its fair value

  • Became profitable this year

Risks

  • Earnings are forecast to decline by an average of 6.9% per year for the next 3 years

  • Interest payments are not well covered by earnings

View all Risks and Rewards

Share Price

Market Cap

1Y Return

View Company Report

Further research on
Tanger Factory Outlet Centers

ValuationFinancial HealthInsider TradingManagement Team