Trade Alert: Independent Chairman of the Board Of StealthGas Michael Jolliffe Has Sold Stock

Anyone interested in StealthGas Inc. (NASDAQ:GASS) should probably be aware that the Independent Chairman of the Board, Michael Jolliffe, recently divested US$347k worth of shares in the company, at an average price of US$9.25 each. The eyebrow raising move amounted to a reduction of 41% in their holding.

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StealthGas Insider Transactions Over The Last Year

Notably, that recent sale by Michael Jolliffe is the biggest insider sale of StealthGas shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$9.68. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 41% of Michael Jolliffe's stake.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for StealthGas

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that StealthGas insiders own 13% of the company, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The StealthGas Insider Transactions Indicate?

An insider sold StealthGas shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing StealthGas. For instance, we've identified 2 warning signs for StealthGas (1 makes us a bit uncomfortable) you should be aware of.

But note: StealthGas 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.