Anyone interested in Nine Energy Service, Inc. (NYSE:NINE) should probably be aware that the President, Ann Fox, recently divested US$470k worth of shares in the company, at an average price of US$2.17 each. The eyebrow raising move amounted to a reduction of 30% in their holding.
Nine Energy Service Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the insider, Warren Frazier, for US$1.1m worth of shares, at about US$4.13 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$2.12. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Nine Energy Service shares, than buying. 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!
I will like Nine Energy Service 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
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 19% of Nine Energy Service shares, worth about US$15m. 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 Does This Data Suggest About Nine Energy Service Insiders?
Insiders sold Nine Energy Service shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Nine Energy Service (1 is a bit unpleasant!) that we believe deserve your full attention.
But note: Nine Energy Service 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.