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Viewing insider transactions for SGH Limited's (ASX:SGH ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At SGH
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Director Rachel Argaman bought AU$1.4m worth of shares at a price of AU$46.10 per share. That implies that an insider found the current price of AU$50.42 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. In this case we're pleased to report that the insider bought shares at close to current prices. Rachel Argaman was the only individual insider to buy shares in the last twelve months.
Rachel Argaman purchased 35.00k shares over the year. The average price per share was AU$45.97. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for SGH
SGH is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does SGH Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that SGH insiders own 0.5% of the company, worth about AU$102m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At SGH Tell Us?
It doesn't really mean much that no insider has traded SGH shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like SGH insiders think the business has merit. 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. In terms of investment risks, we've identified 1 warning sign with SGH and understanding this should be part of your investment process.