Chief Operating Officer Corey Higham Sold A Bunch Of Shares In Secure Energy Services

We wouldn't blame Secure Energy Services Inc. (TSE:SES) shareholders if they were a little worried about the fact that Corey Higham, the Chief Operating Officer recently netted about CA$2.4m selling shares at an average price of CA$11.61. That's a big disposal, and it decreased their holding size by 41%, which is notable but not too bad.

See our latest analysis for Secure Energy Services

The Last 12 Months Of Insider Transactions At Secure Energy Services

Notably, that recent sale by Corey Higham is the biggest insider sale of Secure Energy Services shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of CA$11.53. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid CA$3.0m for 271.85k shares. But insiders sold 409.06k shares worth CA$4.8m. All up, insiders sold more shares in Secure Energy Services than they bought, 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Secure Energy Services

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. 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 Secure Energy Services insiders own 1.5% of the company, worth about CA$44m. 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 Secure Energy Services Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Secure Energy Services, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Secure Energy Services is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. To that end, you should learn about the 3 warning signs we've spotted with Secure Energy Services (including 2 which are a bit unpleasant).

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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com