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From what we can see, insiders were net buyers in Sun Communities, Inc.'s (NYSE:SUI ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Sun Communities
In the last twelve months, the biggest single purchase by an insider was when Chairman & CEO Gary Shiffman bought US$46m worth of shares at a price of US$194 per share. That implies that an insider found the current price of US$196 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Sun Communities insider decided to buy shares at close to current prices. Gary Shiffman was the only individual insider to buy during the last year. Notably Gary Shiffman was also the biggest seller.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Sun Communities Have Sold Stock Recently
The last quarter saw substantial insider selling of Sun Communities shares. In total, President & COO John McLaren sold US$2.2m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Sun Communities 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. It's great to see that Sun Communities insiders own 1.6% of the company, worth about US$378m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Sun Communities Tell Us?
An insider sold Sun Communities shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sun Communities. When we did our research, we found 4 warning signs for Sun Communities (2 make us uncomfortable!) that we believe deserve your full attention.
But note: Sun Communities 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, but not derivative transactions.
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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