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Whilst it may not be a huge deal, we thought it was good to see that the Sturm, Ruger & Company, Inc. (NYSE:RGR) Independent Director, Terrence O'Connor, recently bought US$100k worth of stock, for US$39.88 per share. While that isn't the hugest buy, it actually boosted their shareholding by 64%, which is good to see.
Check out our latest analysis for Sturm Ruger
Sturm Ruger Insider Transactions Over The Last Year
Notably, that recent purchase by Terrence O'Connor is the biggest insider purchase of Sturm Ruger shares that we've seen in the last year. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Sturm Ruger insider decided to buy shares at close to current prices. Terrence O'Connor was the only individual insider to buy during the last year.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
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 appears that Sturm Ruger insiders own 2.9% of the company, worth about US$20m. 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 Does This Data Suggest About Sturm Ruger Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Sturm Ruger shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sturm Ruger. Our analysis shows 3 warning signs for Sturm Ruger (1 is a bit concerning!) and we strongly recommend you look at them before investing.
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.