In This Article:
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Shopping Centres Australasia Property Group (ASX:SCP), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Shopping Centres Australasia Property Group
Shopping Centres Australasia Property Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO & Executive Director of Shopping Centres Australasia Property Group RE Limited, Anthony Michael Mellowes, for AU$1.0m worth of shares, at about AU$2.56 per share. That means that even when the share price was slightly below the current price of AU$2.58, an insider wanted to cash in some shares. 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 30.1% of Anthony Michael Mellowes's holding.
Happily, we note that in the last year insiders paid AU$200k for 79000 shares. But insiders sold 468k shares worth AU$1.2m. Over the last year we saw more insider selling of Shopping Centres Australasia Property Group shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Shopping Centres Australasia Property Group Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Shopping Centres Australasia Property Group shares over the last three months. In that time, insiders dumped AU$1.2m worth of shares. On the other hand we note Independent Non-Executive Director of Shopping Centres Australasia Property Group Re Limited Belinda Robson bought AU$65k worth of shares. Generally this level of net selling might be considered a bit bearish.