Limbach Holdings Insiders Sold US$670k Of Shares Suggesting Hesitancy

Limbach Holdings, Inc. (NASDAQ:LMB) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Limbach Holdings

Limbach Holdings Insider Transactions Over The Last Year

The Independent Director, Michael McNally, made the biggest insider sale in the last 12 months. That single transaction was for US$400k worth of shares at a price of US$51.56 each. That means that even when the share price was below the current price of US$102, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 12% of Michael McNally's holding.

Happily, we note that in the last year insiders paid US$307k for 5.48k shares. But they sold 12.97k shares for US$670k. All up, insiders sold more shares in Limbach Holdings than they bought, over the last year. They sold for an average price of about US$51.66. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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 Limbach Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Limbach Holdings Have Bought Stock Recently

There has been significantly more insider buying, than selling, at Limbach Holdings, over the last three months. In total, two insiders bought US$157k worth of shares in that time. On the other hand, Independent Chairman of the Board Joshua Horowitz netted US$65k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Insider Ownership Of Limbach Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Limbach Holdings insiders own 8.7% of the company, currently worth about US$100m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Limbach Holdings Tell Us?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The recent buying by some insiders , along with high insider ownership, suggest that Limbach Holdings insiders are fairly aligned, and optimistic. While it's good to be aware of 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. At Simply Wall St, we found 1 warning sign for Limbach Holdings that deserve your attention before buying any shares.

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.