Need To Know: SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) Insiders Have Been Buying Shares
It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), you may well want to know whether insiders have been buying or selling.
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 in the company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for SS&C Technologies Holdings
The Last 12 Months Of Insider Transactions At SS&C Technologies Holdings
Director Michael Zamkow made the biggest insider purchase in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$47.53 each. That means that an insider was happy to buy shares at around the current price of US$49.66. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the SS&C Technologies Holdings insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 54976.38 shares for US$2.8m. But insiders sold 10141 shares worth US$607k. In total, SS&C Technologies Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
SS&C Technologies Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
SS&C Technologies Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at SS&C Technologies Holdings. Not only was there no selling that we can see, but they collectively bought US$96k worth of shares. This makes one think the business has some good points.
Insider Ownership of SS&C Technologies Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SS&C Technologies Holdings insiders own about US$1.6b worth of shares (which is 13% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About SS&C Technologies Holdings Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about SS&C Technologies Holdings. That's what I like to see! 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 SS&C Technologies Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
