Have Matrix Service Insiders Been Selling Stock?

We'd be surprised if Matrix Service Company (NASDAQ:MTRX) shareholders haven't noticed that the President of Engineering & Construction, Shawn Payne, recently sold US$104k worth of stock at US$12.58 per share. The eyebrow raising move amounted to a reduction of 16% in their holding.

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Matrix Service Insider Transactions Over The Last Year

Notably, that recent sale by Shawn Payne is the biggest insider sale of Matrix Service shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$11.84. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Matrix Service

I will like Matrix Service 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.

Insider Ownership

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. Matrix Service insiders own about US$17m worth of shares. That equates to 5.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Matrix Service Insider Transactions Indicate?

The stark truth for Matrix Service is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Matrix Service has 1 warning sign we think you should be aware of.

Of course Matrix Service 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.