Insiders Of Somero Enterprises Make A Tidy Sum Selling At US$2.81

Despite the fact that Somero Enterprises, Inc. (LON:SOM) stock rose 14% last week, insiders who sold US$280k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$2.81, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Somero Enterprises

The Last 12 Months Of Insider Transactions At Somero Enterprises

The insider, John Yuncza, made the biggest insider sale in the last 12 months. That single transaction was for UK£280k worth of shares at a price of UK£2.81 each. That means that even when the share price was below the current price of UK£3.35, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 61% of John Yuncza's holding. John Yuncza was the only individual insider to sell shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Somero Enterprises Boast High Insider Ownership?

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. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Somero Enterprises, though insiders do hold about UK£449k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

What Might The Insider Transactions At Somero Enterprises Tell Us?

The fact that there have been no Somero Enterprises insider transactions recently certainly doesn't bother us. Our analysis of Somero Enterprises insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Somero Enterprises. At Simply Wall St, we found 1 warning sign for Somero Enterprises that deserve your attention before buying any shares.

Of course Somero Enterprises 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.