Have Service Corporation International Insiders Been Selling Stock?

Some Service Corporation International (NYSE:SCI) shareholders may be a little concerned to see that the Senior VP & COO, Sumner Waring, recently sold a substantial US$3.8m worth of stock at a price of US$75.07 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Service Corporation International

Service Corporation International Insider Transactions Over The Last Year

In fact, the recent sale by Sumner Waring was the biggest sale of Service Corporation International shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$75.56. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Service Corporation International didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Service Corporation International

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Service Corporation International insiders own 2.6% of the company, currently worth about US$283m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Service Corporation International Insider Transactions Indicate?

Insiders haven't bought Service Corporation International stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 2 warning signs we've spotted with Service Corporation International (including 1 which is potentially serious).

But note: Service Corporation International 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.