We note that the Smart Sand, Inc. (NASDAQ:SND) Independent Director, Sharon Spurlin, recently sold US$90k worth of stock for US$5.07 per share. However we note that the sale only shrunk their holding by 9.3%.

Smart Sand Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Francis Porcelli, sold US$1.0m worth of shares at a price of US$4.03 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.97. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this sale was only 22% of Francis Porcelli's holding.

In the last twelve months insiders purchased 51.13k shares for US$117k. But they sold 496.05k shares for US$2.0m. Over the last year we saw more insider selling of Smart Sand shares, than buying. The average sell price was around US$4.06. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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 Smart Sand better if I see some big insider buys.

Does Smart Sand Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Smart Sand insiders own about US$34m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Smart Sand Tell Us?

The stark truth for Smart Sand is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Smart Sand is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.