Many Steelcase Inc. (NYSE:SCS) insiders have been dumping shares over the past year, which may be of interest to the company’s shareholders. Knowing if insiders are buying is usually more helpful in evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a closer look if multiple insiders are selling shares over a period of time.
While we would never recommend that investors base their decisions solely on the behavior of company executives, we believe it is foolish to completely ignore insider transactions.
Check out our latest analysis for Steelcase
The last 12 months of insider transactions at Steelcase
Senior VP & CFO, David Sylvester, made the largest insider sale of the last 12 months. This single transaction was for US$1.2 million worth of shares at a price of US$13.87 apiece. So it’s clear that an insider saw fit to sell at the current price of around US$13.15. While we don’t usually like to see insider selling, it’s more concerning when the sales occur at a lower price. Given that the sale occurred at around current prices, that makes us a little cautious, but it’s hardly a cause for concern.
Steelcase insiders have not purchased any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including share price, individual, and date!
If you like buying stocks that insiders are buying and not selling, you might like this free List of companies. (Note: most of them fly under the radar).
Steelcase insiders sell shares
There has been significant insider selling at Steelcase over the past three months. In total, insiders sold $2.4 million worth of shares during that time, and we saw no purchases. Given this background, it’s hard to say that all insiders think the stock is a bargain.
Insider ownership at Steelcase
For a common shareholder, it’s worth checking how many shares are held by company insiders. Typically, we like to see a relatively high level of insider ownership. It’s great to see that Steelcase insiders own 21% of the company, worth about $310 million. I like to see this level of insider ownership because it increases the likelihood that management has shareholders’ interests in mind.
So what does this data say about Steelcase Insider?
Insiders haven’t bought any Steelcase shares in the last three months, but there have been some sales. And there have been no purchases in the last year that would reassure us. But since Steelcase is profitable and growing, we’re not too worried about that. While insiders own a lot of the company’s shares (which is good), our analysis of their transactions doesn’t give us confidence in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worth knowing the risks this company faces. To support this, we’ve found 2 warning signs which you should take a look at to get a better picture of Steelcase.
If you would rather check out another company — one with potentially better financials — then don’t miss this free List of interesting companies with HIGH return on equity and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
