Insiders Sold Stoneridge At US$16.49, Meanwhile Stock Sits Near US$5.50

Even though Stoneridge, Inc. (NYSE:SRI) has fallen by 12% over the past week , insiders who sold US$128k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$16.49 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Stoneridge

The Last 12 Months Of Insider Transactions At Stoneridge

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Kimberly Korth, sold US$128k worth of shares at a price of US$16.49 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$5.50. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Kimberly Korth.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$4.1m worth of Stoneridge stock, about 2.5% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Stoneridge Tell Us?

It doesn't really mean much that no insider has traded Stoneridge shares in the last quarter. The insider transactions at Stoneridge are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for Stoneridge and we suggest you have a look.

Of course Stoneridge 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.