Stoneridge Insider Ups Holding During Year
Viewing insider transactions for Stoneridge, Inc.'s (NYSE:SRI ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Stoneridge
The Last 12 Months Of Insider Transactions At Stoneridge
Over the last year, we can see that the biggest insider purchase was by Independent Director Paul Schlather for US$206k worth of shares, at about US$18.85 per share. That implies that an insider found the current price of US$18.85 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Stoneridge share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Paul Schlather.
Paul Schlather bought 15.00k shares over the last 12 months at an average price of US$18.80. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Stoneridge is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Stoneridge insiders own about US$26m worth of shares. That equates to 5.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Stoneridge Tell Us?
It doesn't really mean much that no insider has traded Stoneridge shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Stoneridge and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Stoneridge and understanding them should be part of your investment process.
Of course Stoneridge may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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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