Many last year Schlumberger Limited (NYSE:SLB) insiders have sold a significant stake in the company, which may have caught the attention of shareholders. When evaluating insider transactions, it is usually more helpful to know whether insiders are buying, as insider sales can have various explanations. However, if multiple insiders are selling shares over a period of time, shareholders should take note as it could potentially be a red flag.
While we don’t think shareholders should simply track insider transactions, we still think it’s perfectly logical to keep an eye on insider activity.
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Schlumberger insider transactions last year
We can see that the biggest insider sale in the last year was by Executive Vice President of Core Services & Equipment, Abdellah Merad, for $4.0 million worth of shares at a price of about $57.20 per share . Generally, we don’t like to see insider selling, but the lower the selling price, the more it concerns us. It’s reassuring that this sale was made at a price well above the current share price, which is $48.46 . So it may not tell us anything about what insiders think about the current share price.
Last year we saw more insider sales of Schlumberger shares than purchases. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the graphic, you will see all individual transactions, including share price, individual transaction and date!
I’ll like Schlumberger better if I see some big insider buying. Check this out while we wait free List of growing companies with recent significant insider purchases.
Schlumberger insiders are selling the stock
There was significant insider selling of Schlumberger shares in the last quarter. In total, insiders sold $382,000 worth of shares during this time, and we didn’t see any purchases. With this in mind, it’s hard to claim that all insiders think the stock is a bargain.
Does Schlumberger have high insider ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I think it’s a good sign if insiders own a significant number of shares in the company. Schlumberger insiders own around $151 million worth of shares (or 0.2% of the company). Such significant insider ownership generally increases the chance that the company is being run in the interests of all shareholders.
So what does this data say about Schlumberger Insiders?
Insiders have recently sold shares, but they haven’t bought. And our longer-term analysis of insider transactions did not provide any confidence either. On the bright side, Schlumberger is making money and increasing its profits. While insiders own a lot of shares in the company (which is a good thing), our analysis of their transactions doesn’t give us confidence in the company. In addition to knowing about ongoing insider transactions, it is beneficial to identify the risks Schlumberger faces. You would be interested to know what we found 2 warning signs for Schlumberger and we recommend you take a look.
Naturally, You might find a fantastic investment if you look elsewhere. So take a look free List of interesting companies.
Insiders within the meaning of this article are persons who report their transactions to the relevant supervisory authority. We currently only consider open market transactions and private dispositions of direct holdings, but not derivative transactions or indirect holdings.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.