We wouldn't blame IES Holdings, Inc. (NASDAQ:IESC) shareholders if they were a little worried about the fact that Tracy McLauchlin, the Senior VP recently netted about US$884k selling shares at an average price of US$177. However, that sale only accounted for 7.2% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At IES Holdings
The Independent Director, Todd Cleveland, made the biggest insider sale in the last 12 months. That single transaction was for US$3.2m worth of shares at a price of US$116 each. That means that an insider was selling shares at slightly below the current price (US$171). 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. 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 22% of Todd Cleveland's holding.
Insiders in IES Holdings didn't buy any shares in the last year. 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!
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).
Does IES Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. IES Holdings insiders own about US$86m worth of shares. That equates to 2.5% 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.
What Might The Insider Transactions At IES Holdings Tell Us?
An insider hasn't bought IES Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, IES Holdings makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IES Holdings. Case in point: We've spotted 1 warning sign for IES Holdings you should be aware of.
Of course IES 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.
