Schlumberger Limited's (NYSE:SLB) stock dropped 3.3% this week, offering solace to those who sold earlier in the year
Schlumberger Limited's (NYSE:SLB) value has fallen 3.3% in the last week, but insiders who sold US$12m worth of stock over the last year have had less success. The average selling price of US$46.02 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Schlumberger
The Last 12 Months Of Insider Transactions At Schlumberger
In fact, the recent sale by Khaled Al Mogharbel was the biggest sale of Schlumberger shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$52.27. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year Schlumberger insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Schlumberger better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Schlumberger Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Schlumberger. In total, insiders dumped US$6.1m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Schlumberger Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Schlumberger insiders own 0.2% of the company, worth about US$141m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Schlumberger Insider Transactions Indicate?
Insiders sold Schlumberger shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Schlumberger is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Schlumberger. Case in point: We've spotted 2 warning signs for Schlumberger you should be aware of.
But note: Schlumberger 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, but not derivative transactions.
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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.
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