We'd be surprised if SL Green Realty Corp. (NYSE:SLG) shareholders haven't noticed that the Independent Director, Craig Hatkoff, recently sold US$391k worth of stock at US$65.17 per share. In particular, we note that the sale equated to a 60% reduction in their position size, which doesn't exactly instill confidence.
SL Green Realty Insider Transactions Over The Last Year
Notably, that recent sale by Craig Hatkoff is the biggest insider sale of SL Green Realty shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$63.10. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
You can see the insider transactions (by companies and 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!
I will like SL Green Realty better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of SL Green Realty
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. SL Green Realty insiders own about US$22m worth of shares. That equates to 0.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About SL Green Realty Insiders?
An insider sold SL Green Realty shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, SL Green Realty makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that SL Green Realty has 5 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.
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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