We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Gr. Sarantis S.A. (ATH:SAR).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Gr. Sarantis
Vice Chairman & CEO Kyriakos Sarantis made the biggest insider sale in the last 12 months. That single transaction was for €864k worth of shares at a price of €7.20 each. That means that even when the share price was slightly below the current price of €7.30, an insider wanted to cash in some shares. Even though it doesn’t necessarily mean anything, that’s certainly not a positive sign, in our book. As a general rule we consider it to be discouraging when insiders are selling below the current price. It is worth noting that this sale was only 4.7% of Kyriakos Sarantis’s holding. Notably Kyriakos Sarantis was also the biggest buyer, having purchased €508k worth of shares.
Over the last year we saw more insider selling of Gr. Sarantis shares, than buying. The sellers received a price of around €7.37, on average. It’s not too encouraging to see that insiders have sold at below the current price. But we wouldn’t put too much weight on the insider selling. You can see the insider transactions (by 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!
I will like Gr. Sarantis better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insiders at Gr. Sarantis Have Sold Stock Recently
The last quarter saw substantial insider selling of Gr. Sarantis shares. In total, Kyriakos Sarantis sold €423k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership of Gr. Sarantis
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Gr. Sarantis insiders own about €34m worth of shares. That equates to 7.0% of the company. 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 Do The Gr. Sarantis Insider Transactions Indicate?
An insider hasn’t bought Gr. Sarantis stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn’t give us much comfort. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Gr. Sarantis, you should check out this free report on analyst forecasts for the company.
Of course Gr. Sarantis may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.