Yahoo Finance Insiders may have sold Sempra (NYSE:SRE) early at US$144 per share, while current price continues to trade high at US$151
Even though Sempra (NYSE:SRE) has fallen by 7.7% over the past week , insiders who sold US$370k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$144 is still below the current share price.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Sempra
Sempra Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Senior VP, Peter Wall, sold US$370k worth of shares at a price of US$144 per share. That means that an insider was selling shares at slightly below the current price (US$151). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 27% of Peter Wall's stake. Peter Wall was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Sempra
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Sempra insiders own about US$16m worth of shares. That equates to 0.02% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Sempra Insiders?
It doesn't really mean much that no insider has traded Sempra shares in the last quarter. We don't take much encouragement from the transactions by Sempra insiders. But it's good to see that insiders own shares in the company. 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. To help with this, we've discovered 5 warning signs (3 are concerning!) that you ought to be aware of before buying any shares in Sempra.
But note: Sempra 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.
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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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