We wouldn't blame Sun Communities, Inc. (NYSE:SUI) shareholders if they were a little worried about the fact that Karen Dearing, the Executive VP recently netted about US$1.7m selling shares at an average price of US$149. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.6%.
Sun Communities Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director Arthur Weiss for US$30m worth of shares, at about US$118 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$151. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Sun Communities is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Sun Communities insiders own about US$323m worth of shares (which is 2.3% 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.
What Might The Insider Transactions At Sun Communities Tell Us?
Insiders sold Sun Communities shares recently, but they didn't buy any. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're not too bothered by recent selling. 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 Sun Communities 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.
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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.