Over the past year, insiders sold US$607k worth of Sunstone Hotel Investors, Inc. (NYSE:SHO) stock at an average price of US$13.28 per share allowing them to get the most out of their money. The company’s market worth decreased by US$101m over the past week after the stock price dropped 3.7%, although insiders were able to minimize their losses
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.
View our latest analysis for Sunstone Hotel Investors
Sunstone Hotel Investors Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP, David Klein, sold US$332k worth of shares at a price of US$13.29 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$12.03). So it may not shed much light on insider confidence at current levels.
Sunstone Hotel Investors insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NYSE:SHO Insider Trading Volume November 19th 2021
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).
Does Sunstone Hotel Investors Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Sunstone Hotel Investors insiders own 1.7% of the company, worth about US$45m. 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 Does This Data Suggest About Sunstone Hotel Investors Insiders?
There haven’t been any insider transactions in the last three months — that doesn’t mean much. Still, the insider transactions at Sunstone Hotel Investors in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Sunstone Hotel Investors 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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