Insider Sellers Might Regret Selling United States Steel Shares at a Lower Price Than Current Market Value

Even though United States Steel Corporation (NYSE:X) has fallen by 18% over the past week , insiders who sold US$13m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$49.42 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for United States Steel

The Last 12 Months Of Insider Transactions At United States Steel

The President, David Burritt, made the biggest insider sale in the last 12 months. That single transaction was for US$13m worth of shares at a price of US$50.01 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$31.27. So it may not tell us anything about how insiders feel about the current share price.

Insiders in United States Steel didn't buy any shares in the last year. 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!

I will like United States Steel better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of United States Steel

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. United States Steel insiders own about US$61m worth of shares. That equates to 0.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At United States Steel Tell Us?

The fact that there have been no United States Steel insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by United States Steel insiders. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for United States Steel that deserve your attention before buying any shares.

Of course United States Steel 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.

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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.