Independent Director Adam Rothstein Sold A Bunch Of Shares In Reservoir Media

Some Reservoir Media, Inc. (NASDAQ:RSVR) shareholders may be a little concerned to see that the Independent Director, Adam Rothstein, recently sold a substantial US$931k worth of stock at a price of US$7.57 per share. That's a big disposal, and it decreased their holding size by 43%, which is notable but not too bad.

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Reservoir Media Insider Transactions Over The Last Year

In fact, the recent sale by Adam Rothstein was the biggest sale of Reservoir Media shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$7.78). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 43% of Adam Rothstein's holding.

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!

See our latest analysis for Reservoir Media

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Reservoir Media Boast High Insider Ownership?

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 3.2% of Reservoir Media shares, worth about US$16m. 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 Reservoir Media Tell Us?

An insider hasn't bought Reservoir Media stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Reservoir Media makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 3 warning signs for Reservoir Media (2 are a bit unpleasant!) that we believe deserve your full attention.

But note: Reservoir Media may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.