In the past year, insiders have sold $2.9 million worth of STERIS plc (NYSE:STE) at an average price of $221 per share, giving them the most for their money. The company’s market capitalization plunged $1.8 billion after prices fell 8.7% last week, but insiders were able to limit their loss to some degree.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to completely ignore insider trading.
See our latest analysis for STERIS
The last 12 months of insider trading at STERIS
In the past twelve months, the largest single insider sale occurred when Senior Vice President of Americas Business Operations Cary Majors sold $2.4 million worth of stock at a price of 219 dollars per share. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The good news is that this major selloff took place well above the current price of US$193. So this may not shed much light on insider confidence at current levels. The only individual insider seller in the last year was Cary Majors.
Cary Majors sold a total of 12,950 shares during the year at an average price of US$221. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
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Does STERIS boast high insider ownership?
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. We generally like to see fairly high levels of insider ownership. It appears that STERIS insiders own 0.3% of the company, worth approximately $56 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what does this data suggest about STERIS insiders?
There have been no insider trades in the last three months – that’s not saying much. We are not very encouraged by the transactions of STERIS insiders. The modest level of insider ownership is, at least, some comfort. In addition to knowing what insider trading is going on, it is useful to identify the risks that STERIS faces. In terms of investment risks, we have identified 4 warning signs with STERIS and understanding them should be part of your investment process.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.