Insider Spends US$1.0m Buying More Shares In Sterling Infrastructure

Those following along with Sterling Infrastructure, Inc. (NASDAQ:STRL) will no doubt be intrigued by the recent purchase of shares by Joseph Cutillo, CEO, President & Director of the company, who spent a stonking US$1.0m on stock at an average price of US$124. While that only increased their holding size by 1.9%, it is still a big swing by our standards.

See our latest analysis for Sterling Infrastructure

Sterling Infrastructure Insider Transactions Over The Last Year

The insider, Ronald Ballschmiede, made the biggest insider sale in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$144 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$121). So it may not tell us anything about how insiders feel about the current share price.

In total, Sterling Infrastructure insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Sterling Infrastructure Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Sterling Infrastructure insiders own 3.1% of the company, worth about US$121m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Sterling Infrastructure Insiders?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by an insider , along with high insider ownership, suggest that Sterling Infrastructure insiders are fairly aligned, and optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Sterling Infrastructure (1 can't be ignored) you should be aware of.

Of course Sterling Infrastructure 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.