Have Sirius Real Estate Insiders Been Selling Stock?
Some Sirius Real Estate Limited (LON:SRE) shareholders may be a little concerned to see that the General Counsel, Andrew Peggie, recently sold a substantial UK£510k worth of stock at a price of UK£1.02 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.8%.
Sirius Real Estate Insider Transactions Over The Last Year
Notably, that recent sale by General Counsel Andrew Peggie was not the only time they sold Sirius Real Estate shares this year. Earlier in the year, they fetched UK£0.98 per share in a -UK£687k sale. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of UK£0.99. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. It is worth noting that this sale was only 5.3% of Andrew Peggie's holding.
Happily, we note that in the last year insiders paid UK£98k for 96.19k shares. But they sold 1.49m shares for UK£1.5m. Over the last year we saw more insider selling of Sirius Real Estate shares, than buying. 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!
Check out our latest analysis for Sirius Real Estate
I will like Sirius Real Estate 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.
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. We usually like to see fairly high levels of insider ownership. It appears that Sirius Real Estate insiders own 2.0% of the company, worth about UK£32m. 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 Sirius Real Estate Insider Transactions Indicate?
An insider sold Sirius Real Estate shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Sirius Real Estate 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. We'd practice some caution before buying! 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. For example, Sirius Real Estate has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
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