Don't Ignore The Insider Selling In BlueScope Steel

We wouldn't blame BlueScope Steel Limited (ASX:BSL) shareholders if they were a little worried about the fact that Mark Vassella, the MD, CEO & Executive Director recently netted about AU$1.7m selling shares at an average price of AU$23.14. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.8%.

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The Last 12 Months Of Insider Transactions At BlueScope Steel

In fact, the recent sale by Mark Vassella was the biggest sale of BlueScope Steel shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of AU$22.95. 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 8.74k shares for AU$200k. On the other hand they divested 71.70k shares, for AU$1.7m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for BlueScope Steel

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of BlueScope Steel

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.4% of BlueScope Steel shares, worth about AU$37m. 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 BlueScope Steel Tell Us?

The insider sales have outweighed the insider buying, at BlueScope Steel, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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 4 warning signs for BlueScope Steel you should be aware of, and 1 of them is concerning.

But note: BlueScope Steel 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.