Anyone interested in Matrix Service Company (NASDAQ:MTRX) should probably be aware that the CEO, President & Director, John Hewitt, recently divested US$133k worth of shares in the company, at an average price of US$13.25 each. However, the silver lining is that the sale only reduced their total holding by 2.7%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Matrix Service
In fact, the recent sale by John Hewitt was the biggest sale of Matrix Service shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$13.08. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Matrix Service 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Matrix 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
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. It appears that Matrix Service insiders own 4.1% of the company, worth about US$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Matrix Service Insiders?
Insiders sold Matrix Service shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Matrix Service. Case in point: We've spotted 1 warning sign for Matrix Service you should be aware of.
But note: Matrix 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.