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This Insider Has Just Sold Shares In McGrath RentCorp
Some McGrath RentCorp (NASDAQ:MGRC) shareholders may be a little concerned to see that the Director, Joseph Hanna, recently sold a substantial US$863k worth of stock at a price of US$115 per share. However, that sale only accounted for 4.9% of their holding, so arguably it doesn't say much about their conviction.
McGrath RentCorp Insider Transactions Over The Last Year
In fact, the recent sale by Director Joseph Hanna was not their only sale of McGrath RentCorp shares this year. They previously made an even bigger sale of -US$1.1m worth of shares at a price of US$113 per share. That means that an insider was selling shares at slightly below the current price (US$118). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 5.9% of Joseph Hanna's holding.
McGrath RentCorp insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for McGrath RentCorp
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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that McGrath RentCorp insiders own 1.2% of the company, worth about US$35m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About McGrath RentCorp Insiders?
Insiders haven't bought McGrath RentCorp stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing McGrath RentCorp. While conducting our analysis, we found that McGrath RentCorp has 3 warning signs and it would be unwise to ignore them.
Of course McGrath RentCorp may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.