Some Napco Security Technologies, Inc. (NASDAQ:NSSC) shareholders may be a little concerned to see that the Senior VP of Operations & Finance, Kevin Buchel, recently sold a substantial US$1.7m worth of stock at a price of US$42.84 per share. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.
Napco Security Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Founder, Richard Soloway, sold US$55m worth of shares at a price of US$24.70 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$41.30. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 36% of Richard Soloway's holding.
In the last year Napco Security Technologies 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. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. Napco Security Technologies insiders own about US$165m worth of shares (which is 22% 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.
What Might The Insider Transactions At Napco Security Technologies Tell Us?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Napco Security Technologies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Napco Security Technologies. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Napco Security Technologies.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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.
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