Some NOV Inc. (NYSE:NOV) shareholders may be a little concerned to see that the President of Energy Equipment, Joseph Rovig, recently sold a substantial US$1.2m worth of stock at a price of US$16.40 per share. That sale reduced their total holding by 34% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At NOV
In fact, the recent sale by Joseph Rovig was the biggest sale of NOV shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$16.53, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 34% of Joseph Rovig's stake.
In the last year NOV insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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 NOV Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. NOV insiders own about US$38m worth of shares. That equates to 0.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The NOV Insider Transactions Indicate?
Insiders haven't bought NOV stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, NOV makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NOV. Case in point: We've spotted 3 warning signs for NOV you should be aware of, and 1 of them shouldn't be ignored.
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.
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.
