Who Has Been Selling SunLink Health Systems, Inc. (NYSEMKT:SSY) Shares?
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We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell SunLink Health Systems, Inc. (NYSEMKT:SSY), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
See our latest analysis for SunLink Health Systems
The Last 12 Months Of Insider Transactions At SunLink Health Systems
Over the last year, we can see that the biggest insider sale was by the Director, Steven Baileys, for US$92k worth of shares, at about US$1.55 per share. So what is clear is that an insider saw fit to sell at around the current price of US$1.42. While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Steven Baileys was the only individual insider to sell over the last year.
Steven Baileys divested 60000 shares over the last 12 months at an average price of US$1.54. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does SunLink Health Systems Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. SunLink Health Systems insiders own about US$2.9m worth of shares. That equates to 29% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About SunLink Health Systems Insiders?
An insider sold SunLink Health Systems shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. Along with insider transactions, I recommend checking if SunLink Health Systems is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: SunLink Health Systems 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.
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