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.
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!
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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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