Have Insiders Been Selling St Barbara Limited (ASX:SBM) Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell St Barbara Limited (ASX:SBM), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for St Barbara
St Barbara Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the MD, CEO & Director, Robert Vassie, sold AU$4.1m worth of shares at a price of AU$3.72 per share. That means that an insider was selling shares at around the current price of AU$3.67. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. The only individual insider seller over the last year was Robert Vassie. Notably Robert Vassie was also the biggest buyer, having purchased AU$543k worth of shares.
In the last twelve months insiders purchased 187k shares for AU$543k. On the other hand they divested 1.1m shares, for AU$4.1m. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like St Barbara better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
St Barbara Insiders Bought Stock Recently
Over the last quarter, St Barbara insiders have spent a meaningful amount on shares. In total, insiders bought AU$543k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.
Insider Ownership of St Barbara
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.3% of St Barbara shares, worth about AU$8.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At St Barbara Tell Us?
It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. Neither the level of insider ownership, nor the transactions over the last twelve months inspire us, but we think the recent buying is positive. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for St Barbara.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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.
