Philip Hawkins Is The VP and Division Manager of Mobile Modular & Enviroplex of McGrath RentCorp (NASDAQ:MGRC) And They Just Sold 100% Of Their Shares

By
Simply Wall St
Published
March 17, 2022
NasdaqGS:MGRC
Source: Shutterstock

Some McGrath RentCorp (NASDAQ:MGRC) shareholders may be a little concerned to see that the VP and Division Manager of Mobile Modular & Enviroplex, Philip Hawkins, recently sold a substantial US$906k worth of stock at a price of US$83.42 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

Check out our latest analysis for McGrath RentCorp

The Last 12 Months Of Insider Transactions At McGrath RentCorp

Notably, that recent sale by Philip Hawkins is the biggest insider sale of McGrath RentCorp shares that we've seen in the last year. That means that even when the share price was below the current price of US$86.39, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was 100% of Philip Hawkins's holding.

Insiders in McGrath RentCorp 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:MGRC Insider Trading Volume March 17th 2022

I will like McGrath RentCorp 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

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 McGrath RentCorp insiders own 1.3% of the company, worth about US$28m. 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 McGrath RentCorp Tell Us?

An insider sold McGrath RentCorp shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing McGrath RentCorp. Every company has risks, and we've spotted 2 warning signs for McGrath RentCorp you should know about.

Of course McGrath RentCorp 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.

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