Yahoo Finance Did Sequoia Financial Group Limited (ASX:SEQ) Insiders Sell Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Sequoia Financial Group Limited (ASX:SEQ), 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, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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.'
See our latest analysis for Sequoia Financial Group
The Last 12 Months Of Insider Transactions At Sequoia Financial Group
In the last twelve months, the biggest single sale by an insider was when the , Scott Beeton, sold AU$837k worth of shares at a price of AU$0.33 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.19). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Scott Beeton. Notably Scott Beeton was also the biggest buyer, having purchased AU$260k worth of shares.
Happily, we note that in the last year insiders paid AU$260k for 874k shares. On the other hand they divested 2.5m shares, for AU$837k. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Sequoia Financial Group Have Bought Stock Recently
There was some insider buying at Sequoia Financial Group over the last quarter. Insiders shelled out AU$66k for shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.
Does Sequoia Financial Group Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 33% of Sequoia Financial Group shares, worth about AU$7.8m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Sequoia Financial Group Insiders?
It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. While recent transactions indicate confidence in Sequoia Financial Group, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. Along with insider transactions, I recommend checking if Sequoia Financial Group is growing revenue. This free chart of historic revenue and earnings should make that easy.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
