Some Steel Dynamics, Inc. (NASDAQ:STLD) shareholders may be a little concerned to see that the Executive VP & CTO, Barry Schneider, recently sold a substantial US$12m worth of stock at a price of US$249 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Steel Dynamics
In fact, the recent sale by Barry Schneider was the biggest sale of Steel Dynamics shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$222. So it may not shed much light on insider confidence at current levels.
In the last year Steel Dynamics insiders didn't buy any company stock. You can see the insider transactions (by companies and 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!
View our latest analysis for Steel Dynamics
I will like Steel Dynamics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
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. Steel Dynamics insiders own about US$2.3b worth of shares (which is 6.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Steel Dynamics Tell Us?
An insider hasn't bought Steel Dynamics stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Steel Dynamics makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Steel Dynamics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
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