Possible Bearish Signals With Ingersoll Rand Insiders Disposing Stock

The fact that multiple Ingersoll Rand Inc. (NYSE:IR) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ingersoll Rand

Ingersoll Rand Insider Transactions Over The Last Year

The Chairman, Vicente Reynal, made the biggest insider sale in the last 12 months. That single transaction was for US$6.8m worth of shares at a price of US$90.12 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$97.49. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent 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. We note that the biggest single sale was only 18% of Vicente Reynal's holding.

In the last year Ingersoll Rand insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Are Ingersoll Rand Insiders Buying Or Selling?

In the last three months company Senior Vice President of Human Resources Kathleen Keene divested US$4.1k worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Insider Ownership Of Ingersoll Rand

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ingersoll Rand insiders own about US$80m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Ingersoll Rand Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. Recent sales exacerbate our caution arising from analysis of Ingersoll Rand insider transactions. But we do like the fact that insiders own a fair chunk of the company. Of course, the future is what matters most. So if you are interested in Ingersoll Rand, you should check out this free report on analyst forecasts for the company.

But note: Ingersoll Rand may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.