Have Insiders Sold Suncorp Group Shares Recently?
Some Suncorp Group Limited (ASX:SUN) shareholders may be a little concerned to see that the CEO, MD & Executive Director, Steven Johnston, recently sold a substantial AU$2.8m worth of stock at a price of AU$18.41 per share. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Suncorp Group
In fact, the recent sale by Steven Johnston was the biggest sale of Suncorp Group shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$19.23. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 22% of Steven Johnston's holding.
Happily, we note that in the last year insiders paid AU$776k for 50.30k shares. But they sold 150.00k shares for AU$2.8m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Suncorp Group
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Suncorp Group
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Suncorp Group insiders own about AU$33m worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Suncorp Group Insiders?
An insider hasn't bought Suncorp Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Suncorp Group.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.