Investors who take an interest in Stoneridge, Inc. (NYSE:SRI) should definitely note that the President, James Zizelman, recently paid US$15.72 per share to buy US$102k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 48%.
Stoneridge Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Kimberly Korth, for US$128k worth of shares, at about US$16.49 per share. So what is clear is that an insider saw fit to sell at around the current price of US$16.04. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 9.03k shares for US$153k. But they sold 12.65k shares for US$229k. Over the last year we saw more insider selling of Stoneridge shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Stoneridge
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Stoneridge insiders own 5.1% of the company, worth about US$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Stoneridge Insider Transactions Indicate?
Our data shows a little more insider selling than buying in the last three months. But the net divestment is not enough to concern us at all. We're a little cautious about the insider selling at Stoneridge. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Stoneridge you should be aware of, and 1 of them is significant.
But note: Stoneridge may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.