Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Superior Group of Companies, Inc. (NASDAQ:SGC), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Superior Group of Companies
In the last twelve months, the biggest single sale by an insider was when the Director, Andrew Demott, sold US$204k worth of shares at a price of US$16.32 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$17.13. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 5.7% of Andrew Demott's holding. Andrew Demott was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 15.50k shares worth US$207k. But insiders sold 12.50k shares worth US$204k. In the last twelve months there was more buying than selling by Superior Group of Companies insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Superior Group of Companies is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Over the last three months, we've seen significant insider selling at Superior Group of Companies. In total, Director Andrew Demott sold US$204k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
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. Superior Group of Companies insiders own about US$46m worth of shares. That equates to 17% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
An insider hasn't bought Superior Group of Companies stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So we're not overly bothered by recent selling. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Superior Group of Companies.
But note: Superior Group of Companies 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.
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.
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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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