Yahoo Finance Bullish Simon Property Group, Inc. (NYSE:SPG) insiders filled their treasuries with US$1.4m worth of stock over last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Simon Property Group, Inc.'s (NYSE:SPG) case, it's fantastic news for shareholders.
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.
Check out our latest analysis for Simon Property Group
Simon Property Group Insider Transactions Over The Last Year
Notably, that recent purchase by J. Smith is the biggest insider purchase of Simon Property Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$118. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Simon Property Group share holders is that insiders were buying at near the current price.
While Simon Property Group insiders bought shares during the last year, they didn't sell. Their average price was about US$104. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Simon Property Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Simon Property Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Simon Property Group. Not only was there no selling that we can see, but they collectively bought US$338k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Simon Property Group insiders own 0.5% of the company, currently worth about US$221m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Simon Property Group Insider Transactions Indicate?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Simon Property Group. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Simon Property Group has 2 warning signs we think you should be aware of.
Of course Simon Property 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, but not derivative transactions.
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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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