SM Energy Independent Director William Sullivan Sells 40% Of Holding

We wouldn't blame SM Energy Company (NYSE:SM) shareholders if they were a little worried about the fact that William Sullivan, the Independent Director recently netted about US$3.0m selling shares at an average price of US$49.32. That's a big disposal, and it decreased their holding size by 40%, which is notable but not too bad.

View our latest analysis for SM Energy

The Last 12 Months Of Insider Transactions At SM Energy

In fact, the recent sale by William Sullivan was the biggest sale of SM Energy 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$48.05. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year SM Energy insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like SM Energy 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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. SM Energy insiders own 1.8% of the company, currently worth about US$100m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At SM Energy Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of SM Energy.

But note: SM Energy 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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