Some REX American Resources Corporation (NYSE:REX) shareholders may be a little concerned to see that the Executive Chairman & Head of Corporate Development, Stuart Rose, recently sold a substantial US$1.2m worth of stock at a price of US$58.63 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.1%.
The Last 12 Months Of Insider Transactions At REX American Resources
Notably, that recent sale by Stuart Rose is the biggest insider sale of REX American Resources shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$58.80. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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.
In the last year REX American Resources insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does REX American Resources Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that REX American Resources insiders own 12% of the company, worth about US$126m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The REX American Resources Insider Transactions Indicate?
Insiders haven't bought REX American Resources 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. But it is good to see that REX American Resources is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 2 warning signs with REX American Resources and understanding these should be part of your investment process.
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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.