Some EPAM Systems, Inc. (NYSE:EPAM) shareholders may be a little concerned to see that the Executive VP & Co-Head of Global Business, Balazs Fejes, recently sold a substantial US$1.0m worth of stock at a price of US$322 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
EPAM Systems Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Boris Shnayder, sold US$3.0m worth of shares at a price of US$208 per share. That means that an insider was selling shares at slightly below the current price (US$319). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was 82% of Boris Shnayder’s holding.
EPAM Systems 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like EPAM Systems better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. EPAM Systems insiders own about US$619m worth of shares (which is 3.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The EPAM Systems Insider Transactions Indicate?
Insiders haven’t bought EPAM Systems 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. On the plus side, EPAM Systems makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 EPAM Systems you should know about.
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.
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