Tanger Factory Outlet Centers, Inc.'s (NYSE:SKT) insiders who sold earlier this year may be offered solace in this recent price drop

By
Simply Wall St
Published
January 21, 2022
NYSE:SKT
Source: Shutterstock

Despite the fact that Tanger Factory Outlet Centers, Inc.'s (NYSE:SKT) value has dropped 8.0% in the last week insiders who sold US$927k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$17.70 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Tanger Factory Outlet Centers

Tanger Factory Outlet Centers Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Thomas Reddin, for US$175k worth of shares, at about US$17.50 per share. That means that an insider was selling shares at slightly below the current price (US$18.08). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. It is worth noting that this sale was only 15% of Thomas Reddin's holding.

Insiders in Tanger Factory Outlet Centers didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 January 21st 2022

I will like Tanger Factory Outlet Centers better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders at Tanger Factory Outlet Centers Have Sold Stock Recently

The last quarter saw substantial insider selling of Tanger Factory Outlet Centers shares. Specifically, insiders ditched US$135k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Tanger Factory Outlet Centers Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Tanger Factory Outlet Centers insiders own 3.3% of the company, worth about US$65m. 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?

Insiders sold Tanger Factory Outlet Centers shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Tanger Factory Outlet Centers has 4 warning signs (and 1 which is potentially serious) we think you should know about.

Of course Tanger Factory Outlet Centers may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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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