In the last year, many International Seaways, Inc. (NYSE:INSW) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for International Seaways
The Last 12 Months Of Insider Transactions At International Seaways
Over the last year, we can see that the biggest insider sale was by the Director, Craig Stevenson, for US$2.3m worth of shares, at about US$45.11 per share. That means that an insider was selling shares at slightly below the current price (US$47.60). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 29% of Craig Stevenson's stake.
In the last year International Seaways insiders didn't buy any company stock. 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!
I will like International Seaways better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
International Seaways Insiders Are Selling The Stock
The last three months saw significant insider selling at International Seaways. Specifically, Independent Non-Executive Chairman Douglas Wheat ditched US$368k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. International Seaways insiders own about US$33m worth of shares. That equates to 1.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The International Seaways Insider Transactions Indicate?
An insider hasn't bought International Seaways stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since International Seaways is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing International Seaways. For instance, we've identified 3 warning signs for International Seaways (1 doesn't sit too well with us) you should be aware of.
But note: International Seaways 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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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.