We'd be surprised if Steadfast Group Limited (ASX:SDF) shareholders haven't noticed that the Co-Founder, Robert Kelly, recently sold AU$637k worth of stock at AU$3.64 per share. On the bright side, that sale was only 4.9% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Steadfast Group
Notably, that recent sale by Co-Founder Robert Kelly was not the only time they sold Steadfast Group shares this year. They previously made an even bigger sale of -AU$3.5m worth of shares at a price of AU$3.07 per share. That means that an insider was selling shares at slightly below the current price (AU$3.57). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 25% of Robert Kelly's stake.
Over the last year, we can see that insiders have bought 114250 shares worth AU$356k. But they sold 2605567 for AU$8.5m. Over the last year we saw more insider selling of Steadfast Group shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Steadfast Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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. Steadfast Group insiders own about AU$42m worth of shares. That equates to 1.4% 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.
What Might The Insider Transactions At Steadfast Group Tell Us?
Insiders haven't bought Steadfast Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Steadfast Group is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Steadfast Group.
But note: Steadfast 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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.