Don't Ignore The Insider Selling In Calumet

Some Calumet, Inc. (NASDAQ:CLMT) shareholders may be a little concerned to see that the Independent Director of Calumet GP, Jennifer Straumins, recently sold a substantial US$4.1m worth of stock at a price of US$20.32 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

See our latest analysis for Calumet

Calumet Insider Transactions Over The Last Year

Notably, that recent sale by Jennifer Straumins is the biggest insider sale of Calumet shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$20.92. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. 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. This single sale was just 13% of Jennifer Straumins's stake.

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 small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Calumet 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. We usually like to see fairly high levels of insider ownership. Insiders own 1.9% of Calumet shares, worth about US$34m. 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 Do The Calumet Insider Transactions Indicate?

An insider hasn't bought Calumet stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 5 warning signs for Calumet (1 is significant!) and we strongly recommend you look at them before investing.

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.