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Insider Buying: The Simon Property Group, Inc. (NYSE:SPG) Chairman Just Bought US$9.1m Worth Of Shares

Simply Wall St

Those following along with Simon Property Group, Inc. (NYSE:SPG) will no doubt be intrigued by the recent purchase of shares by David Simon, Chairman of the company, who spent a stonking US$9.1m on stock at an average price of US$60.83. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.

See our latest analysis for Simon Property Group

Simon Property Group Insider Transactions Over The Last Year

In fact, the recent purchase by David Simon was the biggest purchase of Simon Property Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$55.74 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 268.07k shares worth US$15m. But insiders sold 9160 shares worth US$1.6m. Overall, Simon Property Group insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:SPG Recent Insider Trading, March 20th 2020

Simon Property Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Simon Property Group insiders own 0.4% of the company, worth about US$62m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Simon Property Group Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Simon Property Group we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Simon Property Group (of which 1 shouldn't be ignored!) you should know about.

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.

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.

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.

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