NCS Multistage Holdings Insiders Make Handsome Sum Selling Stock At US$34.76 Per Share
While it’s been a great week for NCS Multistage Holdings, Inc. (NASDAQ:NCSM) shareholders after stock gained 12%, not so much for insiders who sold stock over the past year. They could have sold their shares at much higher prices and gotten a better return on their investment if they had waited.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At NCS Multistage Holdings
In the last twelve months, the biggest single sale by an insider was when the Director, Robert Nipper, sold US$126k worth of shares at a price of US$40.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$41.63. 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. 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. This single sale was just 2.6% of Robert Nipper's stake.
In the last year NCS Multistage Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 NCS Multistage Holdings
I will like NCS Multistage Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
NCS Multistage Holdings Insiders Are Selling The Stock
The last quarter saw substantial insider selling of NCS Multistage Holdings shares. Specifically, Director Robert Nipper ditched US$166k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of NCS Multistage Holdings shares, worth about US$11m. 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 NCS Multistage Holdings Insiders?
An insider hasn't bought NCS Multistage Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! 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. Case in point: We've spotted 2 warning signs for NCS Multistage Holdings you should be aware of.
But note: NCS Multistage Holdings 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 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.