Independent Director of System1 Picks Up 4.2% More Stock

Whilst it may not be a huge deal, we thought it was good to see that the System1, Inc. (NYSE:SST) Independent Director, John Civantos, recently bought US$73k worth of stock, for US$38.90 per share. However, it only increased their shares held by 4.2%, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At System1

Over the last year, we can see that the biggest insider sale was by the CEO & Chairman, Michael Blend, for US$7.2m worth of shares, at about US$15.00 per share. 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$3.87. So it is hard to draw any strong conclusion from it. Michael Blend was the only individual insider to sell over the last year.

Michael Blend ditched 550.00k shares over the year. The average price per share was US$15.00. 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!

Check out our latest analysis for System1

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Does System1 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. It appears that System1 insiders own 31% of the company, worth about US$11m. 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 Do The System1 Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by System1 insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. 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. When we did our research, we found 3 warning signs for System1 (2 are a bit concerning!) that we believe deserve your full attention.

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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.