We'd be surprised if Sturm, Ruger & Company, Inc. (NYSE:RGR) shareholders haven't noticed that the Vice Chairman of the Board, Michael Fifer, recently sold US$471k worth of stock at US$72.53 per share. In particular, we note that the sale equated to a 74% reduction in their position size, which doesn't exactly instill confidence.
Sturm Ruger Insider Transactions Over The Last Year
In fact, the recent sale by Vice Chairman of the Board Michael Fifer was not their only sale of Sturm Ruger shares this year. They previously made an even bigger sale of -US$1.3m worth of shares at a price of US$83.58 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$75.31). So it may not shed much light on insider confidence at current levels.
Insiders in Sturm Ruger didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Sturm Ruger Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Sturm Ruger insiders own about US$23m worth of shares. That equates to 1.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Sturm Ruger Insiders?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Sturm Ruger makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. At Simply Wall St, we've found that Sturm Ruger has 4 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.
Of course Sturm Ruger 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, 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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