This Insider Has Just Sold Shares In SoundThinking

We'd be surprised if SoundThinking, Inc. (NASDAQ:SSTI) shareholders haven't noticed that the President, Ralph Clark, recently sold US$436k worth of stock at US$15.50 per share. On the bright side, that sale was only 6.6% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for SoundThinking

The Last 12 Months Of Insider Transactions At SoundThinking

In fact, the recent sale by Ralph Clark was the biggest sale of SoundThinking shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$16.22). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 6.6% of Ralph Clark's stake.

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!

I will like SoundThinking 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.

Does SoundThinking Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that SoundThinking insiders own 5.7% of the company, worth about US$12m. 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 Does This Data Suggest About SoundThinking Insiders?

Insiders haven't bought SoundThinking stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SoundThinking. While conducting our analysis, we found that SoundThinking has 1 warning sign and it would be unwise to ignore it.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.