Even if it's not a huge purchase, we think it was good to see that J. Smith, the Independent Director of Simon Property Group, Inc. (NYSE:SPG) recently shelled out US$71k to buy stock, at US$89.29 per share. However, it only increased their shares held by 1.4%, and it wasn't a huge purchase by absolute value, either.
Simon Property Group Insider Transactions Over The Last Year
In fact, the recent purchase by J. Smith was the biggest purchase of Simon Property Group shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$95.77 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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 Simon Property Group insiders decided to buy shares at close to current prices.
In the last twelve months Simon Property Group insiders were buying shares, but not selling. Their average price was about US$110. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and 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!
Simon Property Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Simon Property Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Simon Property Group insiders own 0.5% of the company, currently worth about US$180m based on the recent share price. 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 Do The Simon Property Group Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Simon Property Group insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Simon Property Group. For example - Simon Property Group has 1 warning sign we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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