Steelcase Inc. (NYSE:SCS) insiders must be happy they sold stock as market cap drops to US$848m

Over the past year, insiders sold US$385k worth of Steelcase Inc. (NYSE:SCS) stock at an average price of US$11.35 per share allowing them to get the most out of their money. The company’s market cap plunged by US$106m after price dropped by 11% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Steelcase

The Senior VP, Lizbeth O'Shaughnessy, made the biggest insider sale in the last 12 months. That single transaction was for US$338k worth of shares at a price of US$11.26 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$7.52). So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Steelcase shares, than buying. 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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Insiders At Steelcase Have Bought Stock Recently

There was some insider buying at Steelcase over the last quarter. President Sara Armbruster bought US$39k worth of shares in that time. We like it when there are only buyers, and no sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Steelcase Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Steelcase insiders own about US$199m worth of shares (which is 23% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Steelcase Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Steelcase insider transactions. While we like knowing 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. Case in point: We've spotted 3 warning signs for Steelcase you should be aware of, and 2 of them are significant.

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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. 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.