This Insider Has Just Sold Shares In Stoneridge, Inc. (NYSE:SRI)

By
Simply Wall St
Published
August 12, 2020
NYSE:SRI

We'd be surprised if Stoneridge, Inc. (NYSE:SRI) shareholders haven't noticed that the Chief Accounting Officer, Robert Hartman, recently sold US$108k worth of stock at US$21.63 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Stoneridge

Stoneridge Insider Transactions Over The Last Year

In fact, the recent sale by Robert Hartman was the biggest sale of Stoneridge shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$23.21, 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. 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. It is worth noting that this sale was only 12% of Robert Hartman's holding.

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!

insider-trading-volume
NYSE:SRI Insider Trading Volume August 12th 2020

For those who like to find winning investments this free list of growing 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. We usually like to see fairly high levels of insider ownership. Stoneridge insiders own about US$31m worth of shares. That equates to 4.9% 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 Stoneridge Insider Transactions Indicate?

An insider sold Stoneridge shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stoneridge. Our analysis shows 3 warning signs for Stoneridge (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.

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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