President & Director Joel Bender Sold A Bunch Of Shares In Cactus

Some Cactus, Inc. (NYSE:WHD) shareholders may be a little concerned to see that the President & Director, Joel Bender, recently sold a substantial US$6.4m worth of stock at a price of US$63.91 per share. That's a big disposal, and it decreased their holding size by 30%, which is notable but not too bad.

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Cactus Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Chairman of the Board, Scott Bender, sold US$6.8m worth of shares at a price of US$50.01 per share. That means that even when the share price was below the current price of US$55.01, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 56% of Scott Bender's holding.

Cactus 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Cactus

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. Cactus insiders own about US$37m worth of shares. That equates to 0.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Cactus Tell Us?

Insiders haven't bought Cactus 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. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Cactus 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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