Have Insiders Sold Steel Dynamics Shares Recently?

We wouldn't blame Steel Dynamics, Inc. (NASDAQ:STLD) shareholders if they were a little worried about the fact that Miguel Alvarez, the Senior Vice President of Metals Recycling recently netted about US$1.0m selling shares at an average price of US$135. However, that sale only accounted for 6.7% of their holding, so arguably it doesn't say much about their conviction.

Our free stock report includes 2 warning signs investors should be aware of before investing in Steel Dynamics. Read for free now.

The Last 12 Months Of Insider Transactions At Steel Dynamics

Over the last year, we can see that the biggest insider sale was by the Senior Vice President of Special Projects, Glenn Pushis, for US$3.2m worth of shares, at about US$135 per share. That means that an insider was selling shares at around the current price of US$130. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Steel Dynamics didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Steel Dynamics

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).

Does Steel Dynamics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Steel Dynamics insiders own about US$1.3b worth of shares (which is 6.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Steel Dynamics Insider Transactions Indicate?

An insider sold Steel Dynamics shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Steel Dynamics.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.