Have Insiders Sold Applied Industrial Technologies Shares Recently?

Some Applied Industrial Technologies, Inc. (NYSE:AIT) shareholders may be a little concerned to see that the President, Neil Schrimsher, recently sold a substantial US$2.9m worth of stock at a price of US$269 per share. However, that sale only accounted for 5.8% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Applied Industrial Technologies

Applied Industrial Technologies Insider Transactions Over The Last Year

Notably, that recent sale by President Neil Schrimsher was not the only time they sold Applied Industrial Technologies shares this year. They previously made an even bigger sale of -US$4.3m worth of shares at a price of US$202 per share. That means that an insider was selling shares at slightly below the current price (US$246). 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. This single sale was just 10% of Neil Schrimsher's stake.

Applied Industrial Technologies insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Applied Industrial Technologies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Applied Industrial Technologies insiders own about US$91m worth of shares. That equates to 1.0% 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 Does This Data Suggest About Applied Industrial Technologies Insiders?

Insiders haven't bought Applied Industrial Technologies stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Applied Industrial Technologies is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. In terms of investment risks, we've identified 1 warning sign with Applied Industrial Technologies and understanding it should be part of your investment process.

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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.