We wouldn't blame Ouster, Inc. (NASDAQ:OUST) shareholders if they were a little worried about the fact that Susan Heystee, the Vice-Chairman of the Board & Lead Independent Director recently netted about US$1.2m selling shares at an average price of US$30.00. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.

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The Last 12 Months Of Insider Transactions At Ouster

Notably, that recent sale by Susan Heystee is the biggest insider sale of Ouster 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$34.72. 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. It is worth noting that this sale was 51% of Susan Heystee's holding.

Over the last year, we can see that insiders have bought 56.00k shares worth US$548k. But they sold 116.14k shares for US$1.9m. All up, insiders sold more shares in Ouster than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ouster

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 Of Ouster

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 Ouster insiders own 4.8% of the company, worth about US$96m. 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 Ouster Insiders?

Insiders sold Ouster shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Ouster you should be aware of.

Of course Ouster may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.