Have SoundThinking Insiders Been Selling Stock?

Anyone interested in SoundThinking, Inc. (NASDAQ:SSTI) should probably be aware that the President, Ralph Clark, recently divested US$191k worth of shares in the company, at an average price of US$11.80 each. On the bright side, that sale was only 3.7% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At SoundThinking

In fact, the recent sale by President Ralph Clark was not their only sale of SoundThinking shares this year. Earlier in the year, they fetched US$15.50 per share in a -US$436k sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$12.30). So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of SoundThinking shares, than buying. 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 SoundThinking

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data indicates that SoundThinking insiders own about US$10.0m worth of shares (which is 6.4% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About SoundThinking Insiders?

Insiders sold SoundThinking shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! 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. Every company has risks, and we've spotted 2 warning signs for SoundThinking you should know about.

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.