Have Insiders Sold Insperity Shares Recently?

We wouldn't blame Insperity, Inc. (NYSE:NSP) shareholders if they were a little worried about the fact that Paul Sarvadi, the Co-Founder recently netted about US$564k selling shares at an average price of US$51.98. However, that sale only accounted for 0.9% of their holding, so arguably it doesn't say much about their conviction.

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Insperity Insider Transactions Over The Last Year

Notably, that recent sale by Co-Founder Paul Sarvadi was not the only time they sold Insperity shares this year. They previously made an even bigger sale of -US$2.6m worth of shares at a price of US$81.60 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$50.38). So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 23.88k shares worth US$1.2m. On the other hand they divested 109.26k shares, for US$8.1m. All up, insiders sold more shares in Insperity than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Insperity

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Insider Ownership Of Insperity

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.1% of Insperity shares, worth about US$96m. 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 Do The Insperity Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Insperity insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. In short they are likely aligned with shareholders. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Insperity has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.