Yahoo Finance How Much Are SG Blocks, Inc. (NASDAQ:SGBX) Insiders Taking Off The Table?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell SG Blocks, Inc. (NASDAQ:SGBX), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Check out our latest analysis for SG Blocks
The Last 12 Months Of Insider Transactions At SG Blocks
Bruce Grossman made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$4.76 each. That is hardly a positive sign, even though it took place above the latest price (US$3.36). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Bruce Grossman.
Happily, we note that in the last year insiders paid US$121k for 30.43k shares. On the other hand they divested 305.78k shares, for US$1.2m. The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does SG Blocks Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. SG Blocks insiders own 12% of the company, currently worth about US$1.7m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About SG Blocks Insiders?
It doesn’t really mean much that no insider has traded SG Blocks shares in the last quarter. Our analysis of SG Blocks insider transactions leaves us unenthusiastic. And we’re not picking up on high enough insider ownership to give us any comfort. Along with insider transactions, I recommend checking if SG Blocks is growing revenue. This free chart of historic revenue and earnings should make that easy.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
