Don't Ignore The Fact That This Insider Just Sold Some Shares In Innovative Solutions and Support, Inc. (NASDAQ:ISSC)

We'd be surprised if Innovative Solutions and Support, Inc. (NASDAQ:ISSC) shareholders haven't noticed that the Independent Vice-Chairman & Presiding Director, Glen Bressner, recently sold US$115k worth of stock at US$6.83 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Innovative Solutions and Support

The Last 12 Months Of Insider Transactions At Innovative Solutions and Support

The Independent Director, Winston Churchill, made the biggest insider sale in the last 12 months. That single transaction was for US$410k worth of shares at a price of US$6.04 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$6.73. 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. 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. It is worth noting that this sale was only 47% of Winston Churchill's holding.

Insiders in Innovative Solutions and Support didn't buy any shares in 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!

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

Insider Ownership of Innovative Solutions and Support

For a common shareholder, it is worth checking how many shares are held by company 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. Innovative Solutions and Support insiders own about US$38m worth of shares. That equates to 32% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Innovative Solutions and Support Tell Us?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Innovative Solutions and Support makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. Case in point: We've spotted 2 warning signs for Innovative Solutions and Support you should be aware of.

Of course Innovative Solutions and Support 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, but not derivative transactions.

If you decide to trade Innovative Solutions and Support, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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