We wouldn't blame Seritage Growth Properties (NYSE:SRG) shareholders if they were a little worried about the fact that Edward Lampert, a company insider, recently netted about US$542k selling shares at an average price of US$9.20. However, that sale only accounted for 0.4% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Seritage Growth Properties

The Last 12 Months Of Insider Transactions At Seritage Growth Properties

Notably, that recent sale by insider Edward Lampert was not the only time they sold Seritage Growth Properties shares this year. Earlier in the year, they fetched US$12.60 per share in a -US$5.1m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$9.00. So it may not tell us anything about how insiders feel about the current share price.

Edward Lampert divested 734.40k shares over the last 12 months at an average price of US$12.08. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Seritage Growth Properties

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Seritage Growth Properties insiders own 34% of the company, currently worth about US$172m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Seritage Growth Properties Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Seritage Growth Properties has 1 warning sign and it would be unwise to ignore it.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.