Spirit Realty Capital, Inc.'s (NYSE:SRC)) market cap declines to US$5.2b but insiders who sold US$1.1m stock were able to hedge their losses

September 29, 2022
  •  Updated
October 04, 2022
Source: Shutterstock

Insiders at Spirit Realty Capital, Inc. (NYSE:SRC) sold US$1.1m worth of stock at an average price of US$46.38 a share over the past year, making the most of their investment. After the stock price dropped 6.9% last week, the company's market value declined by US$383m, but insiders were able to mitigate their losses.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

If you're not interested in researching SRC's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

Spirit Realty Capital Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Jay Young, sold US$883k worth of shares at a price of US$46.38 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$38.05). So it may not tell us anything about how insiders feel about the current share price.

Spirit Realty Capital insiders didn't buy any shares over the last year. 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!

NYSE:SRC Insider Trading Volume September 29th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Spirit Realty Capital 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of Spirit Realty Capital shares, worth about US$31m. 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 Spirit Realty Capital Insiders?

It doesn't really mean much that no insider has traded Spirit Realty Capital shares in the last quarter. Our analysis of Spirit Realty Capital insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spirit Realty Capital. When we did our research, we found 3 warning signs for Spirit Realty Capital (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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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