Sarcos Technology and Robotics Corporation (NASDAQ:STRC) drops to US$147m and insiders who purchased earlier this year lose another US$246k

The recent 19% drop in Sarcos Technology and Robotics Corporation's (NASDAQ:STRC) stock could come as a blow to insiders who purchased US$341k worth of stock at an average buy price of US$3.41 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$95k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out the opportunities and risks within the US Machinery industry.

The Last 12 Months Of Insider Transactions At Sarcos Technology and Robotics

In the last twelve months, the biggest single purchase by an insider was when Independent Director Brian Finn bought US$189k worth of shares at a price of US$3.82 per share. That means that an insider was happy to buy shares at above the current price of US$0.95. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Brian Finn was the only individual insider to buy shares in the last twelve months.

Brian Finn purchased 100.00k shares over the year. The average price per share was US$3.41. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Sarcos Technology and Robotics

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. We usually like to see fairly high levels of insider ownership. Sarcos Technology and Robotics insiders own about US$54m worth of shares. That equates to 37% of the company. 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 Sarcos Technology and Robotics Insiders?

The fact that there have been no Sarcos Technology and Robotics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Sarcos Technology and Robotics and we see no evidence to suggest they are worried about the future. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Sarcos Technology and Robotics.

But note: Sarcos Technology and Robotics 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, but not derivative transactions.

What are the risks and opportunities for Sarcos Technology and Robotics?

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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.

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