How Much Are SeaLink Travel Group Limited (ASX:SLK) Insiders Taking Off The Table?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in SeaLink Travel Group Limited (ASX:SLK).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
View our latest analysis for SeaLink Travel Group
The Last 12 Months Of Insider Transactions At SeaLink Travel Group
Over the last year, we can see that the biggest insider sale was by the Non-Executive Director, Terry Dodd, for AU$432k worth of shares, at about AU$4.28 per share. That means that an insider was selling shares at around the current price of AU$3.69. While we don't usually like to see insider selling, it's more concerning if the sales take price 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). Terry Dodd was the only individual insider to sell over the last year.
Terry Dodd divested 249k shares over the last 12 months at an average price of AU$4.29. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 20% of SeaLink Travel Group shares, worth about AU$73m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At SeaLink Travel Group Tell Us?
It doesn't really mean much that no insider has traded SeaLink Travel Group shares in the last quarter. We don't take much encouragement from the transactions by SeaLink Travel Group insiders. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in SeaLink Travel Group, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.
