Have Standard Motor Products Insiders Been Selling Stock?

We'd be surprised if Standard Motor Products, Inc. (NYSE:SMP) shareholders haven't noticed that the VP of Information Technology & Chief Information Officer, Ray Nicholas, recently sold US$161k worth of stock at US$34.11 per share. On the bright side, that sale was only 7.9% of their holding, so we doubt it's very meaningful, on its own.

View our latest analysis for Standard Motor Products

Standard Motor Products Insider Transactions Over The Last Year

Notably, that recent sale by Ray Nicholas is the biggest insider sale of Standard Motor Products shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$34.21). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 7.9% of Ray Nicholas's holding.

Insiders in Standard Motor Products 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Standard Motor Products better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Standard Motor Products Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Standard Motor Products insiders own about US$64m worth of shares. That equates to 8.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Standard Motor Products Insider Transactions Indicate?

Insiders sold Standard Motor Products shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While it's good to be aware of 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 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Standard Motor Products.

But note: Standard Motor Products 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.