Insiders of Synlait Milk Limited (NZSE: SML) made a handsome profit after selling shares currently valued at NZ $ 3.56 apiece for NZ $ 5.23
Despite the fact that shares of Synlait Milk Limited (NZSE: SML) rose 13% last week, insiders who sold NZ $ 154,000 of shares in the previous 12 months should be better off. Selling at an average price of NZ $ 5.23, which is higher than the current price, might have been the right choice, as holding the shares would have meant their investment would have been worth less than it was. at the time of sale.
While we don’t think shareholders should just follow insider trading, we think it makes perfect sense to keep tabs on what insiders are doing.
See our latest review for Synlait milk
Synlait Milk insider trading in the past year
Over the past year, we can see that the biggest insider sale was by insider Roger Schwarzenbach for NZ $ 99,000 of shares, at around NZ $ 5.09 per share. While we generally don’t like to see insider sales, it is more of a concern if the sales come at a lower price. The good news is that this big sale was well above the current price of NZ $ 3.56. So it might not shed much light on insider confidence at current levels.
Synlait Milk insiders have not bought any shares in the past year. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you click on the chart you can see all of the individual trades including the stock price, individual and date!
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. Strong insider ownership often makes company management more concerned with the interests of shareholders. Insiders own 3.4% of the shares in Synlait Milk, worth around NZ $ 26 million. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what does this data suggest about Synlait Milk Insiders?
It doesn’t mean much that no insiders have traded Synlait Milk shares in the past quarter. Still, insider trading at Synlait Milk over the past 12 months is not very encouraging. But it’s good to see that the insiders own shares in the company. While we love to know what’s going on with ownership and insider trading, we also make sure to consider the risks a stock faces before making any investment decisions. Every business has risks, and we have spotted 3 warning signs for Synlait milk (of which 1 is significant!) that you should know.
But beware : Synlait Milk may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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