Have Insiders Sold Schlumberger Shares Recently?

We wouldn't blame Schlumberger Limited (NYSE:SLB) shareholders if they were a little worried about the fact that Demos Pafitis, a company insider, recently netted about US$3.0m selling shares at an average price of US$48.26. That diminished their holding by a very significant 65%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for Schlumberger

Schlumberger Insider Transactions Over The Last Year

Notably, that recent sale by insider Demos Pafitis was not the only time they sold Schlumberger shares this year. Earlier in the year, they fetched US$58.83 per share in a -US$3.5m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$48.29. So it is hard to draw any strong conclusion from it.

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

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Schlumberger insiders own 0.2% of the company, worth about US$164m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Schlumberger Insiders?

Insiders haven't bought Schlumberger stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But since Schlumberger is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Schlumberger you should be aware of.

But note: Schlumberger 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.