We wouldn't blame Worthington Steel, Inc. (NYSE:WS) shareholders if they were a little worried about the fact that Clifford Larivey, the President of Flat-Roll Steel Processing recently netted about US$785k selling shares at an average price of US$40.30. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.
Worthington Steel Insider Transactions Over The Last Year
In fact, the recent sale by Clifford Larivey was the biggest sale of Worthington Steel shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$41.24, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 37% of Clifford Larivey's holding.
In the last twelve months insiders purchased 9.50k shares for US$374k. But insiders sold 25.85k shares worth US$1.0m. Clifford Larivey divested 25.85k shares over the last 12 months at an average price of US$40.25. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Worthington Steel
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Worthington Steel Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Worthington Steel insiders own 12% of the company, currently worth about US$247m based on the recent share price. 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 Does This Data Suggest About Worthington Steel Insiders?
An insider hasn't bought Worthington Steel stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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 Worthington Steel. For example, Worthington Steel has 4 warning signs (and 2 which are potentially serious) we think you should know about.
Of course Worthington Steel 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.