Have SoundThinking Insiders Been Selling Stock?

We'd be surprised if SoundThinking, Inc. (NASDAQ:SSTI) shareholders haven't noticed that the CFO & Secretary, Alan Stewart, recently sold US$209k worth of stock at US$13.95 per share. That sale was 12% of their holding, so it does make us raise an eyebrow.

View our latest analysis for SoundThinking

The Last 12 Months Of Insider Transactions At SoundThinking

Notably, that recent sale by Alan Stewart is the biggest insider sale of SoundThinking shares that we've seen in the last year. 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$12.48. So it may not tell us anything about how insiders feel about the current share price.

In the last year SoundThinking insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does SoundThinking Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that SoundThinking insiders own 14% of the company, worth about US$23m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SoundThinking Insiders?

Insiders haven't bought SoundThinking stock in the last three months, but there was some selling. 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. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that SoundThinking has 2 warning signs and it would be unwise to ignore these.

But note: SoundThinking 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.