Have Sea Harvest Group Limited (JSE:SHG) Insiders Been Selling Their Stock?

Anyone interested in Sea Harvest Group Limited (JSE:SHG) should probably be aware that the CEO & Executive Director, Felix Ratheb, recently divested R3.9m worth of shares in the company, at an average price of R14.00 each. The eyebrow raising move amounted to a reduction of 18% in their holding.

Check out our latest analysis for Sea Harvest Group

Sea Harvest Group Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Executive Director Felix Ratheb was not their only sale of Sea Harvest Group shares this year. Earlier in the year, they fetched R12.41 per share in a -R6.1m sale. That means that an insider was selling shares at slightly below the current price (R14.00). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 22%of Felix Ratheb's holding.

Sea Harvest Group insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Sea Harvest Group Boast High 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. Based on our data, Sea Harvest Group insiders have about 1.7% of the stock, worth approximately R69m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Sea Harvest Group Tell Us?

An insider hasn't bought Sea Harvest Group stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Sea Harvest Group makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Sea Harvest Group and understanding these should be part of your investment process.

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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This article by Simply Wall St is general in nature. 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.
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