Don't Ignore The Fact That This Insider Just Sold Some Shares In SBM Offshore N.V. (AMS:SBMO)

Some SBM Offshore N.V. (AMS:SBMO) shareholders may be a little concerned to see that the Chairman of Management Board & CEO, Bruno Y. Chabas, recently sold a substantial €804k worth of stock at a price of €15.79 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.1%.

See our latest analysis for SBM Offshore

SBM Offshore Insider Transactions Over The Last Year

Notably, that recent sale by Chairman of Management Board & CEO Bruno Y. Chabas was not the only time they sold SBM Offshore shares this year. They previously made an even bigger sale of -€969k worth of shares at a price of €12.79 per share. That means that an insider was selling shares at slightly below the current price (€16.02). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. We note that the biggest single sale was only 6.4%of Bruno Y. Chabas's holding.

Insiders in SBM Offshore didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does SBM Offshore 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 SBM Offshore insiders own 1.2% of the company, worth about €34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At SBM Offshore Tell Us?

Insiders haven't bought SBM Offshore stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, SBM Offshore makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (2 can't be ignored!) that you ought to be aware of before buying any shares in SBM Offshore.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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. 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.
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