Sempra Chairman Jeffrey Martin Sells 72% Of Holding

We wouldn't blame Sempra (NYSE:SRE) shareholders if they were a little worried about the fact that Jeffrey Martin, the Chairman recently netted about US$4.1m selling shares at an average price of US$82.94. Probably the most concerning element of the whole transaction is that the disposal amounted to 72% of their entire holding.

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Sempra Insider Transactions Over The Last Year

In fact, the recent sale by Jeffrey Martin was the biggest sale of Sempra shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$82.93. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Sempra insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sempra insiders own about US$19m worth of shares. That equates to 0.04% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Sempra Insider Transactions Indicate?

Insiders sold Sempra shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But since Sempra is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sempra. At Simply Wall St, we've found that Sempra has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Sempra 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.