Have Insiders Sold Quanta Services, Inc. (NYSE:PWR) Shares Recently?

We wouldn't blame Quanta Services, Inc. (NYSE:PWR) shareholders if they were a little worried about the fact that Derrick Jensen, the Chief Financial Officer recently netted about US$3.0m selling shares at an average price of US$80.99. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

See our latest analysis for Quanta Services

Quanta Services Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Earl Austin, for US$9.6m worth of shares, at about US$64.05 per share. That means that an insider was selling shares at slightly below the current price (US$83.12). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 19% of Earl Austin's holding.

Over the last year, we can see that insiders have bought 382.00 shares worth US$12k. On the other hand they divested 452.88k shares, for US$30m. In total, Quanta Services insiders sold more than they bought 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Quanta Services 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. We usually like to see fairly high levels of insider ownership. Quanta Services insiders own 1.1% of the company, currently worth about US$128m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Quanta Services Insider Transactions Indicate?

An insider sold Quanta Services shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Quanta Services makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

When trading Quanta Services or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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