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Insiders were net buyers of Stockland's (ASX:SGP ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Stockland
The Last 12 Months Of Insider Transactions At Stockland
The MD, CEO & Director Tarun Gupta made the biggest insider purchase in the last 12 months. That single transaction was for AU$868k worth of shares at a price of AU$4.21 each. That implies that an insider found the current price of AU$4.60 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Stockland share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Tarun Gupta.
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!
Stockland is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Stockland
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. From our data, it seems that Stockland insiders own 0.1% of the company, worth about AU$13m. We do generally prefer see higher levels of insider ownership.
So What Do The Stockland Insider Transactions Indicate?
The fact that there have been no Stockland insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Stockland and we see no evidence to suggest they are worried about the future. 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. Case in point: We've spotted 4 warning signs for Stockland you should be aware of, and 1 of these doesn't sit too well with us.