Some Mirvac Group (ASX:MGR) shareholders may be a little concerned to see that the CEO, MD & Executive Director, Susan Lloyd-Hurwitz, recently sold a whopping AU$745k worth of stock at a price of AU$3.20 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.0%.
The Last 12 Months Of Insider Transactions At Mirvac Group
In fact, the recent sale by CEO, MD & Executive Director Susan Lloyd-Hurwitz was not their only sale of Mirvac Group shares this year. Earlier in the year, they fetched AU$2.74 per share in a -AU$875.8k sale. That means that an insider was selling shares at slightly below the current price (AU$3.23). 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. 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. This single sale was just 9.0% of Susan Lloyd-Hurwitz's stake.
Susan Lloyd-Hurwitz ditched 625292 shares over the year. The average price per share was AU$2.95. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Mirvac 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.
Insider Ownership of Mirvac Group
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. Mirvac Group insiders own about AU$25m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Mirvac Group Tell Us?
An insider sold Mirvac Group shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Mirvac Group.
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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.