Insider Sellers Might Regret Selling XPEL Shares at a Lower Price Than Current Market Value

Despite the fact that XPEL, Inc.'s (NASDAQ:XPEL) value has dropped 39% in the last week insiders who sold US$6.2m worth of stock in the past 12 months have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$73.30 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for XPEL

The Last 12 Months Of Insider Transactions At XPEL

Over the last year, we can see that the biggest insider sale was by the insider, Mark Adams, for US$1.9m worth of shares, at about US$75.00 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$32.86). So it is hard to draw any strong conclusion from it.

Insiders in XPEL didn't buy any shares in 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!

I will like XPEL better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does XPEL Boast High 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. XPEL insiders own about US$330m worth of shares (which is 22% 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 Does This Data Suggest About XPEL Insiders?

It doesn't really mean much that no insider has traded XPEL shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the XPEL insiders selling. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - XPEL has 1 warning sign we think you should be aware of.

Of course XPEL 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.