This Insider Has Just Sold Shares In Sturm Ruger

Anyone interested in Sturm, Ruger & Company, Inc. (NYSE:RGR) should probably be aware that the Director, Christopher Killoy, recently divested US$400k worth of shares in the company, at an average price of US$40.00 each. The eyebrow raising move amounted to a reduction of 11% in their holding.

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Sturm Ruger Insider Transactions Over The Last Year

In fact, the recent sale by Christopher Killoy was the biggest sale of Sturm Ruger 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$41.78, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 11% of Christopher Killoy's holding.

Over the last year, we can see that insiders have bought 18.20k shares worth US$622k. But insiders sold 18.58k shares worth US$718k. Christopher Killoy ditched 18.58k shares over the year. The average price per share was US$38.62. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Sturm Ruger

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Sturm Ruger Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Sturm Ruger insiders own 3.5% of the company, worth about US$24m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Sturm Ruger Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Sturm Ruger stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sturm Ruger. To help with this, we've discovered 4 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Sturm Ruger.

But note: Sturm Ruger may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.