13% Of This Calumet Insider's Holdings Were Sold

Looking at Calumet, Inc.'s (NASDAQ:CLMT ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Calumet

The Last 12 Months Of Insider Transactions At Calumet

The Independent Director of Calumet GP, Jennifer Straumins, made the biggest insider sale in the last 12 months. That single transaction was for US$4.1m worth of shares at a price of US$20.59 each. 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$14.33). So it may not tell us anything about how insiders feel about the current share price. Jennifer Straumins was the only individual insider to sell over the last year.

Jennifer Straumins divested 312.86k shares over the last 12 months at an average price of US$20.77. 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!

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Insiders At Calumet Have Sold Stock Recently

The last quarter saw substantial insider selling of Calumet shares. In total, Independent Director of Calumet GP Jennifer Straumins dumped US$2.4m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Calumet 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 appears that Calumet insiders own 3.2% of the company, worth about US$40m. 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 Calumet Insiders?

An insider hasn't bought Calumet 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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 Calumet (1 shouldn't be ignored) you should be aware of.

But note: Calumet 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.