Have Reliance Insiders Been Selling Stock?

We wouldn't blame Reliance, Inc. (NYSE:RS) shareholders if they were a little worried about the fact that Karla Lewis, the President recently netted about US$9.4m selling shares at an average price of US$301. That sale reduced their total holding by 24% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Reliance

Reliance Insider Transactions Over The Last Year

Notably, that recent sale by Karla Lewis is the biggest insider sale of Reliance shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$295. 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.

In the last year Reliance insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Reliance

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. We usually like to see fairly high levels of insider ownership. Reliance insiders own about US$97m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Reliance Tell Us?

An insider sold Reliance shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reliance. Case in point: We've spotted 1 warning sign for Reliance you should be aware of.

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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.