Quite a few insiders have dramatically grown their holdings in Strategic Education, Inc. (NASDAQ:STRA) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Strategic Education Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Robert Silberman for US$850k worth of shares, at about US$80.70 per share. That means that an insider was happy to buy shares at around the current price of US$87.81. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Strategic Education share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$1.7m for 19.58k shares. But insiders sold 1.49k shares worth US$120k. In the last twelve months there was more buying than selling by Strategic Education insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Strategic Education
Strategic Education is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Strategic Education Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Strategic Education. In fact, four insiders bought US$1.2m worth of shares. On the other hand, Independent Director Robert Grusky netted US$120k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
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. We usually like to see fairly high levels of insider ownership. It appears that Strategic Education insiders own 3.6% of the company, worth about US$73m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Strategic Education Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Strategic Education shares, given these transactions (along with notable insider ownership of the company). Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Strategic Education.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.