Some Carpenter Technology Corporation (NYSE:CRS) shareholders may be a little concerned to see that the Independent Director, Steven Karol, recently sold a substantial US$2.7m worth of stock at a price of US$181 per share. However, that sale only accounted for 3.5% of their holding, so arguably it doesn't say much about their conviction.

Carpenter Technology Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Steven Karol was not the only time they sold Carpenter Technology shares this year. Earlier in the year, they fetched US$101 per share in a -US$3.1m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$191. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.8% of Steven Karol's holding.

Steven Karol divested 46.00k shares over the last 12 months at an average price of US$127. 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!

I will like Carpenter Technology better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Carpenter Technology 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Carpenter Technology insiders own 2.4% of the company, currently worth about US$215m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Carpenter Technology Insiders?

An insider hasn't bought Carpenter Technology stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Carpenter Technology is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. You'd be interested to know, that we found 2 warning signs for Carpenter Technology and we suggest you have a look.

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.

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