MD & Director David Macgeorge Sold A Bunch Of Shares In SRG Global
Some SRG Global Limited (ASX:SRG) shareholders may be a little concerned to see that the MD & Director, David Macgeorge, recently sold a substantial AU$13m worth of stock at a price of AU$3.70 per share. That sale reduced their total holding by 35% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At SRG Global
Notably, that recent sale by David Macgeorge is the biggest insider sale of SRG Global shares that we've seen in the last year. That means that even when the share price was slightly below the current price of AU$3.76, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 35% of David Macgeorge's holding.
Over the last year, we can see that insiders have bought 71.00k shares worth AU$171k. But they sold 3.53m shares for AU$13m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for SRG Global
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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. SRG Global insiders own about AU$71m worth of shares. That equates to 3.0% 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.
What Might The Insider Transactions At SRG Global Tell Us?
An insider hasn't bought SRG Global stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since SRG Global is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with SRG Global and understanding it should be part of your investment process.
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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.