Insiders Sold Matrix Service Prematurely At US$11.94 With Stock Trading Higher

Matrix Service Company's (NASDAQ:MTRX) stock price has dropped 12% in the previous week, but insiders who sold US$469k in stock over the past year have had less luck. The average selling price of US$11.94 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Matrix Service

The Last 12 Months Of Insider Transactions At Matrix Service

The CEO, President & Director, John Hewitt, made the biggest insider sale in the last 12 months. That single transaction was for US$133k worth of shares at a price of US$13.25 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$8.90). So it may not tell us anything about how insiders feel about the current share price.

Insiders in Matrix Service 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 4.0% of Matrix Service shares, worth about US$9.7m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Matrix Service Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Matrix Service shares in the last quarter. Our analysis of Matrix Service insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

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