Have Insiders Sold Sage Group Shares Recently?
Some The Sage Group plc (LON:SGE) shareholders may be a little concerned to see that the CEO & Executive Director, Stephen Hare, recently sold a substantial UK£1.4m worth of stock at a price of UK£10.65 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.
Sage Group Insider Transactions Over The Last Year
In fact, the recent sale by Stephen Hare was the biggest sale of Sage Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (UK£10.70). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 16% of Stephen Hare's holding.
All up, insiders sold more shares in Sage Group 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!
See our latest analysis for Sage Group
I will like Sage Group better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Sage Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Sage Group shares, worth about UK£19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Sage Group Insider Transactions Indicate?
Insiders haven't bought Sage Group stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Sage Group makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sage Group. You'd be interested to know, that we found 2 warning signs for Sage Group and we suggest you have a look.
Of course Sage Group 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.