An Insider At Soho House & Co Lowered Their Holding Recently

Simply Wall St · 10/16 11:20

From what we can see, insiders were net sellers in Soho House & Co Inc.'s (NYSE:SHCO ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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.

View our latest analysis for Soho House & Co

The Last 12 Months Of Insider Transactions At Soho House & Co

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Andrew Carnie, for US$316k worth of shares, at about US$5.64 per share. So what is clear is that an insider saw fit to sell at around the current price of US$5.39. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Andrew Carnie was the only individual insider to sell shares in the last twelve months.

Andrew Carnie sold a total of 121.85k shares over the year at an average price of US$5.34. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:SHCO Insider Trading Volume October 16th 2024

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Soho House & Co Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Soho House & Co. Specifically, CEO & Director Andrew Carnie ditched US$651k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Soho House & Co insiders own about US$359m worth of shares (which is 34% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Soho House & Co Insiders?

An insider sold Soho House & Co shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Soho House & Co. When we did our research, we found 3 warning signs for Soho House & Co (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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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.