Insiders who bought into Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) earlier this year might wish they'd invested more as stock gained 3.5%

By
Simply Wall St
Published
September 27, 2021
NasdaqGS:SNCY
Source: Shutterstock

Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 3.5%, resulting in a US$69m rise in the company's market capitalisation. Put another way, the original US$78k acquisition is now worth US$116k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Sun Country Airlines Holdings

Sun Country Airlines Holdings Insider Transactions Over The Last Year

The Independent Director Kerry Philipovitch made the biggest insider purchase in the last 12 months. That single transaction was for US$54k worth of shares at a price of US$24.00 each. We do like to see buying, but this purchase was made at well below the current price of US$35.81. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Sun Country Airlines Holdings insiders may have bought shares in the last year, but they didn't sell any. 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!

insider-trading-volume
NasdaqGS:SNCY Insider Trading Volume September 27th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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. We usually like to see fairly high levels of insider ownership. It appears that Sun Country Airlines Holdings insiders own 2.4% of the company, worth about US$48m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Sun Country Airlines Holdings Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Sun Country Airlines Holdings and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Sun Country Airlines Holdings you should know about.

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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