Yahoo Finance Bullish Stoneridge, Inc. (NYSE:SRI) insiders filled their treasuries with US$525k worth of stock over last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Stoneridge, Inc.'s (NYSE:SRI) case, it's fantastic news for shareholders.
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.
View our latest analysis for Stoneridge
The Last 12 Months Of Insider Transactions At Stoneridge
The CEO, President & Director Jonathan DeGaynor made the biggest insider purchase in the last 12 months. That single transaction was for US$243k worth of shares at a price of US$19.37 each. Even though the purchase was made at a significantly lower price than the recent price (US$22.58), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Stoneridge insiders may have bought shares in the last year, but they didn't sell any. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. We usually like to see fairly high levels of insider ownership. Insiders own 4.6% of Stoneridge shares, worth about US$28m. 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 Do The Stoneridge Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Stoneridge shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Stoneridge insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Stoneridge and understanding this 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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