Sequoia Financial Group Drops To AU$0.098, Yet Insiders May Have Sold Too Early
Sequoia Financial Group Limited's (ASX:SEQ) stock price has dropped 15% in the previous week, but insiders who sold AU$350k in stock over the past year have had less luck. The average selling price of AU$0.28 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Sequoia Financial Group
The insider, Brent Jones, made the biggest insider sale in the last 12 months. That single transaction was for AU$350k worth of shares at a price of AU$0.28 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$0.098. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Brent Jones.
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!
See our latest analysis for Sequoia Financial Group
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Have Sequoia Financial Group Insiders Traded Recently?
There was some insider buying at Sequoia Financial Group over the last quarter. insider Garry Crole bought AU$7.8k worth of shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership Of Sequoia Financial Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sequoia Financial Group insiders own about AU$1.9m worth of shares. That equates to 16% of the company. 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 Sequoia Financial Group Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. Our analysis of Sequoia Financial Group insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. While conducting our analysis, we found that Sequoia Financial Group has 2 warning signs and it would be unwise to ignore these.
Of course Sequoia Financial 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.
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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.