Independent Director of Calumet GP Of Calumet Sold 60% Of Their Shares

Some Calumet, Inc. (NASDAQ:CLMT) shareholders may be a little concerned to see that the Independent Director of Calumet GP, Daniel Sheets, recently sold a substantial US$554k worth of stock at a price of US$13.86 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 60% of their entire holding.

We've discovered 3 warning signs about Calumet. View them for free.

The Last 12 Months Of Insider Transactions At Calumet

Over the last year, we can see that the biggest insider sale was by the Independent Director, Jennifer Straumins, for US$4.1m worth of shares, at about US$20.59 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$13.82. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Calumet shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Calumet

I will like Calumet better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Calumet

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Calumet insiders own 4.4% of the company, worth about US$52m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Calumet Tell Us?

Unfortunately, there has been more insider selling of Calumet stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of 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 Calumet has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

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.