Consumer Durables News

Superior Group of Companies, Inc. (NASDAQ:SGC) insiders recover some losses but still US$83k away from matching original investment


Insiders who bought US$435k worth of Superior Group of Companies, Inc. (NASDAQ:SGC) stock in the last year have seen some of their losses recouped as the stock gained 10% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$83k since the time of purchase.

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 Superior Group of Companies

The Last 12 Months Of Insider Transactions At Superior Group of Companies

The CEO & Inside Director Michael Benstock made the biggest insider purchase in the last 12 months. That single transaction was for US$286k worth of shares at a price of US$15.37 each. That means that an insider was happy to buy shares at above the current price of US$11.50. 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. To us, it’s very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Superior Group of Companies insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGM:SGC Insider Trading Volume January 12th 2023

Superior Group of Companies 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.

Superior Group of Companies Insiders Bought Stock Recently

It’s good to see that Superior Group of Companies insiders have made notable investments in the company’s shares. Specifically, Independent Director Todd Siegel bought US$53k worth of shares in that time, and we didn’t record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Superior Group of Companies

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 14% of Superior Group of Companies shares, worth about US$27m. 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 Superior Group of Companies Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don’t feel the same about the fact the company is making losses. Insiders likely see value in Superior Group of Companies shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Superior Group of Companies. For instance, we’ve identified 3 warning signs for Superior Group of Companies (2 are significant) you should be aware of.

Of course Superior Group of Companies 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.

Valuation is complex, but we’re helping make it simple.

Find out whether Superior Group of Companies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.



Source link