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A Scentre Group (ASX:SCG) insider increased their holdings last year

Insiders were net buyers of Scentre Group's (ASX:SCG ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Scentre Group

The Last 12 Months Of Insider Transactions At Scentre Group

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Catherine Brenner for AU$290k worth of shares, at about AU$2.90 per share. That implies that an insider found the current price of AU$3.07 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Scentre Group share holders is that an insider was buying at near the current price. Catherine Brenner was the only individual insider to buy during the last year.

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The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
insider-trading-volume

Scentre Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Scentre Group Have Sold Stock Recently

We have seen a bit of insider selling at Scentre Group, over the last three months. Independent Non-Executive Director Andrew Harmos only netted AU$58k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Insider Ownership Of Scentre Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.2% of Scentre Group shares, worth about AU$24m. 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 Scentre Group Tell Us?

An insider hasn't bought Scentre Group stock in the last three months, but there was some selling. But we take heart from prior transactions. And insiders do own shares. So we're not overly bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Scentre Group. To that end, you should learn about the 3 warning signs we've spotted with Scentre Group (including 1 which can't be ignored).

But note: Scentre Group 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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