Stock Analysis

Who Has Been Selling Tanger Factory Outlet Centers, Inc. (NYSE:SKT) Shares?

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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 shareholders might well want to know whether insiders have been buying or selling shares in Tanger Factory Outlet Centers, Inc. (NYSE:SKT).

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Tanger Factory Outlet Centers

The Last 12 Months Of Insider Transactions At Tanger Factory Outlet Centers

The Independent Director, Thomas Reddin, made the biggest insider sale in the last 12 months. That single transaction was for US$175k worth of shares at a price of US$17.50 each. That means that even when the share price was below the current price of US$19.17, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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 15% of Thomas Reddin's stake.

Happily, we note that in the last year insiders paid US$82k for 14.30k shares. On the other hand they divested 24.00k shares, for US$408k. In total, Tanger Factory Outlet Centers insiders sold more than they bought over 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!

NYSE:SKT Insider Trading Volume July 6th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Tanger Factory Outlet Centers

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. Tanger Factory Outlet Centers insiders own about US$76m worth of shares. That equates to 3.7% of the company. 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?

The fact that there have been no Tanger Factory Outlet Centers insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Tanger Factory Outlet Centers insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tanger Factory Outlet Centers. Case in point: We've spotted 3 warning signs for Tanger Factory Outlet Centers you should be aware of, and 1 of these doesn't sit too well with us.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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.

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  • Earnings are forecast to decline by an average of 10.3% per year for the next 3 years

  • Interest payments are not well covered by earnings

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