Multiple insiders secured a larger position in Stockland (ASX:SGP) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Stockland

The Last 12 Months Of Insider Transactions At Stockland

The MD, CEO & Director Tarun Gupta made the biggest insider purchase in the last 12 months. That single transaction was for AU$874k worth of shares at a price of AU$4.29 each. Even though the purchase was made at a significantly lower price than the recent price (AU$5.13), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Stockland insiders were buying shares, but not selling. You can see the insider transactions (by companies and 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Stockland

Many investors like to check how much of a company is owned by 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. It appears that Stockland insiders own 0.2% of the company, worth about AU$21m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Stockland Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Stockland shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Stockland and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stockland. Our analysis shows 2 warning signs for Stockland (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

Of course Stockland 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.