Insiders who bought Sable Offshore Corp. (NYSE:SOC) in the last 12 months may probably not pay attention to the stock's recent 16% drop. Even after accounting for the recent loss, the US$68.9m worth of stock purchased by them is now worth US$95.4m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Sable Offshore

The Chairman & CEO James Flores made the biggest insider purchase in the last 12 months. That single transaction was for US$32m worth of shares at a price of US$10.00 each. We do like to see buying, but this purchase was made at well below the current price of US$14.00. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 6.82m shares worth US$69m. But they sold 282.24k shares for US$3.9m. In the last twelve months there was more buying than selling by Sable Offshore insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Sable Offshore is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Sable Offshore Insiders Are Selling The Stock

We've seen more insider selling than insider buying at Sable Offshore recently. We note insiders cashed in US$3.9m worth of shares. On the flip side, Chairman & CEO James Flores spent US$2.7m on purchasing shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Does Sable Offshore Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Sable Offshore insiders own 29% of the company, worth about US$254m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Sable Offshore Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Sable Offshore, in the last three months. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Sable Offshore (2 can't be ignored!) and we strongly recommend you look at them before investing.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com