We wouldn't blame Applied Industrial Technologies, Inc. (NYSE:AIT) shareholders if they were a little worried about the fact that Neil Schrimsher, the President recently netted about US$16m selling shares at an average price of US$170. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.
View our latest analysis for Applied Industrial Technologies
The Last 12 Months Of Insider Transactions At Applied Industrial Technologies
Notably, that recent sale by Neil Schrimsher is the biggest insider sale of Applied Industrial Technologies shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$174). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 32%of Neil Schrimsher's holding.
Insiders in Applied Industrial Technologies 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!
I will like Applied Industrial Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Applied Industrial Technologies
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Applied Industrial Technologies insiders own about US$109m worth of shares (which is 1.6% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Applied Industrial Technologies Insiders?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Applied Industrial Technologies is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Applied Industrial Technologies has 1 warning sign and it would be unwise to ignore it.
Of course Applied Industrial Technologies 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.