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Have EastGroup Properties, Inc. (NYSE:EGP) Insiders Been Selling Their Stock?

Simply Wall St

We wouldn't blame EastGroup Properties, Inc. (NYSE:EGP) shareholders if they were a little worried about the fact that David Hoster, the Chairman of the Board recently netted about US$797k selling shares at an average price of US$133. However, that sale only accounted for 2.8% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for EastGroup Properties

EastGroup Properties Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Head of Eastern Regional, John Coleman, sold US$1.1m worth of shares at a price of US$111 per share. That means that an insider was selling shares at slightly below the current price (US$134). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 9.1% of John Coleman's holding.

We note that in the last year insiders divested 36682 shares for a total of US$4.1m. Insiders in EastGroup Properties didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:EGP Recent Insider Trading, November 1st 2019

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of EastGroup Properties

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. EastGroup Properties insiders own 2.1% of the company, currently worth about US$106m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At EastGroup Properties Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look to the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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.