Trade Alert: The MD, CEO & Director Of Stockland (ASX:SGP), Tarun Gupta, Has Just Spent AU$1.1m Buying 84% More Shares
Those following along with Stockland (ASX:SGP) will no doubt be intrigued by the recent purchase of shares by Tarun Gupta, MD, CEO & Director of the company, who spent a stonking AU$1.1m on stock at an average price of AU$3.74. That purchase boosted their holding by 84%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.
View our latest analysis for Stockland
Stockland Insider Transactions Over The Last Year
In fact, the recent purchase by Tarun Gupta was the biggest purchase of Stockland shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$3.38. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Stockland insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.
Does Stockland Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Stockland insiders own 0.1% of the company, worth about AU$11m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Stockland Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Stockland shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Stockland has 4 warning signs (and 2 which are a bit concerning) we think you should know about.
But note: Stockland 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.
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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.
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