Trade Alert: Independent Director Of Sinclair Daniel Keith Has Sold Stock

Anyone interested in Sinclair, Inc. (NASDAQ:SBGI) should probably be aware that the Independent Director, Daniel Keith, recently divested US$255k worth of shares in the company, at an average price of US$15.02 each. That sale was 40% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Sinclair

In fact, the recent sale by Independent Director Daniel Keith was not their only sale of Sinclair shares this year. Earlier in the year, they fetched US$13.10 per share in a -US$550k sale. That means that even when the share price was below the current price of US$14.78, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 63% of Daniel Keith's holding.

In total, Sinclair insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Sinclair

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Sinclair insiders own about US$453m worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Sinclair Tell Us?

Insiders sold Sinclair shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 6 warning signs for Sinclair (of which 2 are potentially serious!) you should know about.

Of course Sinclair 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 of direct interests only, but not derivative transactions or indirect interests.

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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.