Stoneridge, Inc.'s (NYSE:SRI) value has fallen 23% in the last week, but insiders who sold US$128k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$16.49 is still below the current share price.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Stoneridge Insider Transactions Over The Last Year
The Independent Director, Kimberly Korth, made the biggest insider sale in the last 12 months. That single transaction was for US$128k worth of shares at a price of US$16.49 each. 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$6.99. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Kimberly Korth.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Stoneridge
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Stoneridge insiders own 5.1% of the company, worth about US$9.9m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Stoneridge Insiders?
It doesn't really mean much that no insider has traded Stoneridge shares in the last quarter. Our analysis of Stoneridge insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stoneridge. For example - Stoneridge has 2 warning signs we think you should be aware of.
Of course Stoneridge 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.
