Insiders were net buyers of Sitio Royalties Corp.'s (NYSE:STR ) stock during the past year. That is, insiders bought more stock than they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Sitio Royalties
Over the last year, we can see that the biggest insider purchase was by CEO & Director Christopher Conoscenti for US$221k worth of shares, at about US$22.40 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$26.37. 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.
Christopher Conoscenti bought 12.50k shares over the last 12 months at an average price of US$21.73. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Sitio Royalties insiders own 0.5% of the company, worth about US$9.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Sitio Royalties Tell Us?
It doesn't really mean much that no insider has traded Sitio Royalties shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Sitio Royalties insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sitio Royalties. When we did our research, we found 2 warning signs for Sitio Royalties (1 is potentially serious!) that we believe deserve your full attention.
Of course Sitio Royalties 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.