When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Stericycle, Inc.'s (NASDAQ:SRCL) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Stericycle
Stericycle Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Executive VP & Chief People Officer Joseph Reuter for US$309k worth of shares, at about US$44.09 per share. So it's clear an insider wanted to buy, at around the current price, which is US$47.75. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Stericycle share holders is that insiders were buying at near the current price.
Stericycle insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. 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 0.3% of Stericycle shares, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Stericycle Insiders?
It doesn't really mean much that no insider has traded Stericycle shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Stericycle and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Stericycle. Case in point: We've spotted 1 warning sign for Stericycle you should be aware of.
Of course Stericycle may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.