Sun Country Airlines Holdings Insiders Sell US$2.4m Of Stock, Possibly Signalling Caution

Many Sun Country Airlines Holdings, Inc. (NASDAQ:SNCY) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

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.

Check out our latest analysis for Sun Country Airlines Holdings

Sun Country Airlines Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Jude Bricker, sold US$1.6m worth of shares at a price of US$19.70 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 good news is that this large sale was at well above current price of US$14.55. So it may not tell us anything about how insiders feel about the current share price.

In total, Sun Country Airlines Holdings 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Sun Country Airlines Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Sun Country Airlines Holdings Insiders Are Selling The Stock

We've seen more insider selling than insider buying at Sun Country Airlines Holdings recently. In total, insiders sold US$382k worth of shares in that time. On the flip side, Independent Chair of the Board Jennifer Vogel spent US$200k on purchasing shares (as mentioned above) . The share price has moved a bit recently, but it's hard to argue that the selling is a positive.

Insider Ownership Of Sun Country Airlines Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Sun Country Airlines Holdings insiders own 0.9% of the company, worth about US$7.2m. Whilst better than nothing, we're not overly impressed by these holdings.

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

Unfortunately, there has been more insider selling of Sun Country Airlines Holdings stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Sun Country Airlines Holdings makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Sun Country Airlines Holdings (1 is significant!) that we believe deserve your full attention.

Of course Sun Country Airlines Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.