Yahoo Finance Insider Stock Buying Reaches US$10.2m On Sonida Senior Living
Multiple insiders secured a larger position in Sonida Senior Living, Inc. (NYSE:SNDA) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Sonida Senior Living
The Last 12 Months Of Insider Transactions At Sonida Senior Living
In the last twelve months, the biggest single purchase by an insider was when insider Shmuel Levinson bought US$10m worth of shares at a price of US$9.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$32.88. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$10m for 1.06m shares. But insiders sold 9.19k shares worth US$259k. In total, Sonida Senior Living insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Sonida Senior Living Insiders Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Sonida Senior Living. In total, three insiders bought US$10m worth of shares in that time. But we did see Senior VP & Chief Revenue Officer Michael Fryar sell shares worth US$259k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Does Sonida Senior Living Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sonida Senior Living insiders own 6.6% of the company, worth about US$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Sonida Senior Living Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Sonida Senior Living shares, given these transactions (along with notable insider ownership of the company). 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. At Simply Wall St, we found 3 warning signs for Sonida Senior Living that deserve your attention before buying any shares.
But note: Sonida Senior Living may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
