Insiders at Sensata Technologies Holding plc (NYSE:ST) sold US$111k worth of stock at an average price of US$50.91 a share over the past year, making the most of their investment. The company's market worth decreased by US$525m over the past week after the stock price dropped 8.3%, although insiders were able to minimize their losses

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Sensata Technologies Holding

The Last 12 Months Of Insider Transactions At Sensata Technologies Holding

The Company Secretary, Shannon Votava, made the biggest insider sale in the last 12 months. That single transaction was for US$88k worth of shares at a price of US$48.81 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$37.52. So it is hard to draw any strong conclusion from it.

Sensata Technologies Holding insiders didn't buy any shares over 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 the share price, individual, and the date!

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Does Sensata Technologies Holding Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.5% of Sensata Technologies Holding shares, worth about US$28m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Sensata Technologies Holding Tell Us?

The fact that there have been no Sensata Technologies Holding insider transactions recently certainly doesn't bother us. Still, the insider transactions at Sensata Technologies Holding in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Sensata Technologies Holding has 3 warning signs (and 1 which is concerning) we think you should know about.

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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, but not derivative transactions.

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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.