This Insider Has Just Sold Shares In Southern

Some The Southern Company (NYSE:SO) shareholders may be a little concerned to see that insider Christopher Cummiskey recently sold a substantial US$1.1m worth of stock at a price of US$89.54 per share. That sale reduced their total holding by 30% which is hardly insignificant, but far from the worst we've seen.

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Southern Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman, Kimberly Greene, for US$3.0m worth of shares, at about US$93.12 per share. So we know that an insider sold shares at around the present share price of US$88.75. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Southern insiders didn't buy any company stock. 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!

See our latest analysis for Southern

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Does Southern Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Southern insiders own about US$196m worth of shares (which is 0.2% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Southern Insider Transactions Indicate?

Insiders sold Southern shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Southern is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern. For instance, we've identified 3 warning signs for Southern (1 is concerning) you should be aware of.

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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.