Trade Alert: Independent Director Of Perimeter Solutions Vivek Raj Has Sold Stock

We wouldn't blame Perimeter Solutions, Inc. (NYSE:PRM) shareholders if they were a little worried about the fact that Vivek Raj, the Independent Director recently netted about US$2.3m selling shares at an average price of US$9.17. That sale reduced their total holding by 35% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Perimeter Solutions

The Last 12 Months Of Insider Transactions At Perimeter Solutions

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Haitham Khouri, for US$3.2m worth of shares, at about US$12.17 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$9.02. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Perimeter Solutions shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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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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 Perimeter Solutions

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Perimeter Solutions insiders own 5.4% of the company, worth about US$74m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Perimeter Solutions Tell Us?

An insider hasn't bought Perimeter Solutions stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. Case in point: We've spotted 1 warning sign for Perimeter Solutions you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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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.