SEACOR Marine Holdings Insiders Make Handsome Sum Selling Stock At US$9.75 Per Share

Despite the fact that SEACOR Marine Holdings Inc. (NYSE:SMHI) stock rose 13% last week, insiders who sold US$367k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$9.75, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for SEACOR Marine Holdings

SEACOR Marine Holdings Insider Transactions Over The Last Year

The Independent Director, Robert Regan, made the biggest insider sale in the last 12 months. That single transaction was for US$221k worth of shares at a price of US$10.21 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$13.96. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14% of Robert Regan's holding. The only individual insider seller over the last year was Robert Regan.

Robert Regan ditched 37.67k shares over the year. The average price per share was US$9.75. 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!

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Insider Ownership Of SEACOR Marine Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. SEACOR Marine Holdings insiders own about US$32m worth of shares. That equates to 8.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About SEACOR Marine Holdings Insiders?

It doesn't really mean much that no insider has traded SEACOR Marine Holdings shares in the last quarter. Still, the insider transactions at SEACOR Marine Holdings in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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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.