Even if it's not a huge purchase, we think it was good to see that Terrence O'Connor, the Independent Director of Sturm, Ruger & Company, Inc. (NYSE:RGR) recently shelled out US$100k to buy stock, at US$39.88 per share. Even though that isn't a massive buy, it did increase their holding by 64%, which is arguably a good sign.
Sturm Ruger Insider Transactions Over The Last Year
In fact, the recent purchase by Terrence O'Connor was the biggest purchase of Sturm Ruger shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$41.06. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Sturm Ruger share holders is that an insider was buying at near the current price. Terrence O'Connor was the only individual insider to buy shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Sturm Ruger is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Sturm Ruger
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Sturm Ruger insiders own about US$20m worth of shares. That equates to 2.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Sturm Ruger Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Sturm Ruger we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sturm Ruger. To help with this, we've discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Sturm Ruger.
But note: Sturm Ruger 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.
