This Santos Insider Reduced Their Stake By 12% \

From what we can see, insiders were net sellers in Santos Limited's (ASX:STO ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Santos

The Last 12 Months Of Insider Transactions At Santos

Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Kevin Gallagher, for AU$2.1m worth of shares, at about AU$6.89 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$7.50. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 12% of Kevin Gallagher's holding. The only individual insider seller over the last year was Kevin Gallagher.

Over the last year, we can see that insiders have bought 34.88k shares worth AU$265k. But insiders sold 301.40k shares worth AU$2.1m. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

Insiders At Santos Have Sold Stock Recently

There was substantially more insider selling, than buying, of Santos shares over the last three months. In that time, MD, CEO & Director Kevin Gallagher dumped AU$2.1m worth of shares. Meanwhile Independent Non-Executive Chairman Keith Spence bought AU$100k worth. Generally this level of net selling might be considered a bit bearish.

Does Santos Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Santos insiders own 0.1% of the company, worth about AU$30m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Santos Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Santos stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Santos is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Santos (including 1 which doesn't sit too well with us).

Of course Santos 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, but not derivative transactions.

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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.