Don't Ignore The Insider Selling In Standex International

Anyone interested in Standex International Corporation (NYSE:SXI) should probably be aware that the VP, CFO & Treasurer, Ademir Sarcevic, recently divested US$420k worth of shares in the company, at an average price of US$230 each. The eyebrow raising move amounted to a reduction of 16% in their holding.

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Standex International Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Thomas Hansen, for US$606k worth of shares, at about US$203 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$236. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 26% of Thomas Hansen's holding.

All up, insiders sold more shares in Standex International than they bought, over the last year. 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!

See our latest analysis for Standex International

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Does Standex International Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.0% of Standex International shares, worth about US$55m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Standex International Insider Transactions Indicate?

Insiders sold Standex International shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Standex International. Our analysis shows 4 warning signs for Standex International (1 is concerning!) and we strongly recommend you look at these before investing.

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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.