Despite the fact that Concrete Pumping Holdings, Inc.'s (NASDAQ:BBCP) value has dropped 14% in the last week insiders who sold US$302k worth of stock in the past 12 months have had less success. Given that the average selling price of US$8.13 is still lower than the current share price, insiders would probably have been better off keeping their shares.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Concrete Pumping Holdings Insider Transactions Over The Last Year
The President, Bruce Young, made the biggest insider sale in the last 12 months. That single transaction was for US$302k worth of shares at a price of US$8.39 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$6.46. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Bruce Young.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Concrete Pumping Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 6.1% of Concrete Pumping Holdings shares, worth about US$22m. 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 Do The Concrete Pumping Holdings Insider Transactions Indicate?
The fact that there have been no Concrete Pumping Holdings insider transactions recently certainly doesn't bother us. Still, the insider transactions at Concrete Pumping Holdings in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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 that end, you should learn about the 2 warning signs we've spotted with Concrete Pumping Holdings (including 1 which can't be ignored).
Of course Concrete Pumping Holdings 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.
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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.