Shareholders May Not Overlook Great Lakes Dredge & Dock Insiders Selling US$706k In Stock

Despite the fact that Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD) stock rose 13% last week, insiders who sold US$706k worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$12.49, which is higher than the current price, may have been the best decision.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Great Lakes Dredge & Dock

Great Lakes Dredge & Dock Insider Transactions Over The Last Year

The Independent Director, Kathleen Shanahan, made the biggest insider sale in the last 12 months. That single transaction was for US$294k worth of shares at a price of US$12.63 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.65. So it may not tell us anything about how insiders feel about the current share price.

Over the last year we saw more insider selling of Great Lakes Dredge & Dock shares, than buying. 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!

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Insiders At Great Lakes Dredge & Dock Have Bought Stock Recently

There was some insider buying at Great Lakes Dredge & Dock over the last quarter. Senior Vice President of Project Services & Fleet Engineering Christopher Gunsten bought US$30k worth of shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Great Lakes Dredge & Dock insiders own 1.8% of the company, worth about US$10m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Great Lakes Dredge & Dock Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. Our analysis of Great Lakes Dredge & Dock insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. Every company has risks, and we've spotted 1 warning sign for Great Lakes Dredge & Dock 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 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.