Trade Alert: Executive VP Of Cleveland-Cliffs James Graham Has Sold Stock

Some Cleveland-Cliffs Inc. (NYSE:CLF) shareholders may be a little concerned to see that the Executive VP, James Graham, recently sold a substantial US$822k worth of stock at a price of US$6.85 per share. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

We've discovered 3 warning signs about Cleveland-Cliffs. View them for free.

Cleveland-Cliffs Insider Transactions Over The Last Year

In fact, the recent sale by James Graham was the biggest sale of Cleveland-Cliffs shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$6.48. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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.

Over the last year, we can see that insiders have bought 72.95k shares worth US$974k. But they sold 157.55k shares for US$1.4m. In total, Cleveland-Cliffs insiders sold more than they bought over the last year. 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!

View our latest analysis for Cleveland-Cliffs

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 Of Cleveland-Cliffs

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.8% of Cleveland-Cliffs shares, worth about US$58m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Cleveland-Cliffs Insiders?

Unfortunately, there has been more insider selling of Cleveland-Cliffs stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cleveland-Cliffs. For example, Cleveland-Cliffs has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course Cleveland-Cliffs may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.