Some REA Group Limited (ASX:REA) shareholders may be a little concerned to see that the CEO & Executive Director, Owen Wilson, recently sold a substantial AU$3.6m worth of stock at a price of AU$242 per share. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.
Check out our latest analysis for REA Group
In fact, the recent sale by Owen Wilson was the biggest sale of REA Group shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$247. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in REA Group didn't buy any shares in the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.4% of REA Group shares, worth about AU$131m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
An insider sold REA Group shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing REA Group. At Simply Wall St, we found 1 warning sign for REA Group that deserve your attention before buying any shares.
Of course REA Group 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.
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