We note that the Sturm, Ruger & Company, Inc. (NYSE:RGR) Vice President of Sales, Shawn Leska, recently sold US$69k worth of stock for US$46.28 per share. While that isn't a lot of money, it was a whopping 86% of their holding, so certainly isn't a good sign.
Sturm Ruger Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman Charles Jacobi for US$666k worth of shares, at about US$44.43 per share. That means that an insider was happy to buy shares at around the current price of US$47.58. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Sturm Ruger insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 15500 shares for US$688k. On the other hand they divested 1500 shares, for US$69k. In total, Sturm Ruger insiders bought more than they sold over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Sturm Ruger is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Sturm Ruger Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Sturm Ruger insiders own 2.9% of the company, worth about US$24m. 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 Sturm Ruger Insiders?
The insider sales have outweighed the insider buying, at Sturm Ruger, in the last three months. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So the recent selling doesn't worry us too much. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow for free.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.