Anyone interested in Standard Motor Products, Inc. (NYSE:SMP) should probably be aware that the VP of Information Technology & Chief Information Officer, Ray Nicholas, recently divested US$231k worth of shares in the company, at an average price of US$39.75 each. That sale was 12% of their holding, so it does make us raise an eyebrow.

Standard Motor Products Insider Transactions Over The Last Year

In fact, the recent sale by VP of Information Technology & Chief Information Officer Ray Nicholas was not their only sale of Standard Motor Products shares this year. They previously made an even bigger sale of -US$346k worth of shares at a price of US$38.01 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$39.16. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 15% of Ray Nicholas's holding.

In the last year Standard Motor Products insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Standard Motor Products better if I see some big insider buys.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.5% of Standard Motor Products shares, worth about US$47m. 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 Does This Data Suggest About Standard Motor Products Insiders?

An insider sold Standard Motor Products shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Standard Motor Products is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

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.

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.