Some The Southern Company (NYSE:SO) shareholders may be a little concerned to see that the CEO, President & Chairman, Christopher Womack, recently sold a substantial US$1.2m worth of stock at a price of US$86.18 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.
Southern Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO, President & Chairman of Southern Company Gas, James Kerr, for US$2.7m worth of shares, at about US$89.64 per share. So what is clear is that an insider saw fit to sell at around the current price of US$84.81. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Southern didn't buy any shares in the last year. 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!
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Does Southern Boast High 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. We usually like to see fairly high levels of insider ownership. Southern insiders own about US$176m worth of shares (which is 0.2% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Southern Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Southern is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southern. At Simply Wall St, we've found that Southern has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.
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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.
