This Insider Has Just Sold Shares In Southern

Some The Southern Company (NYSE:SO) shareholders may be a little concerned to see that the CEO, President & Chairman, Christopher Womack, recently sold a substantial US$1.2m worth of stock at a price of US$86.18 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Southern

The Last 12 Months Of Insider Transactions At Southern

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Chairman of Southern Company Gas, James Kerr, sold US$2.7m worth of shares at a price of US$89.64 per share. So what is clear is that an insider saw fit to sell at around the current price of US$83.20. While we don't usually like to see insider selling, it's more concerning if the sales take place 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. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Southern

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. Southern insiders own 0.2% of the company, currently worth about US$172m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Southern Insiders?

Insiders haven't bought Southern stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Southern is growing earnings. 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. To that end, you should learn about the 3 warning signs we've spotted with Southern (including 1 which shouldn't be ignored).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.