By selling for 2.2 million dollars of Standex international company (NYSE:SXI) at an average sale price of US$116 over the past year, insiders appeared to have made the most of their holdings. The company’s market capitalization fell $131 million after prices fell 11% last week, but insiders were able to limit their loss to some extent.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to ignore insider trading altogether.
However, if you prefer to see where opportunities and risks are within SXI’s industryyou can consult our analysis on the American machinery industry.
Standex International insider trading over the past year
Independent director Charles Cannon has made the biggest insider sale in the last 12 months. This single transaction involved $1.1 million worth of shares at a price of $116 each. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. The silver lining is that this sale took place above the last price (US$87.36). So this may not tell us anything about what insiders think of the current stock price.
Standex International insiders have not purchased any shares in the past year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. It appears that Standex International insiders own 2.1% of the company, worth around $22 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
What could insider trading at Standex International tell us?
There have been no insider trades in the last three months – that’s not saying much. Our analysis of Standex International’s insider trading leaves us cautious. But we like the fact that insiders own a good chunk of the business. If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily you can check this free report showing analysts’ predictions for its future.
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
Calculation of discounted cash flows for each share
Simply Wall St performs a detailed calculation of discounted cash flow every 6 hours for every stock in the market, so if you want to find the intrinsic value of any company, just search here. It’s free.