Have Quanta Services Insiders Been Selling Stock?

Some Quanta Services, Inc. (NYSE:PWR) shareholders may be a little concerned to see that the Executive VP & General Counsel, Donald Wayne, recently sold a substantial US$1.1m worth of stock at a price of US$211 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

View our latest analysis for Quanta Services

Quanta Services Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President, Earl Austin, sold US$28m worth of shares at a price of US$176 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$207. 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. 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.

In the last year Quanta Services insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Quanta Services Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Quanta Services insiders own 1.2% of the company, worth about US$368m. 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. And there weren't any purchases to give us comfort, over the last year. On the plus side, Quanta Services makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for Quanta Services that deserve your attention before buying any shares.

But note: Quanta Services 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.