Have Standex International Insiders Been Selling Stock?

We'd be surprised if Standex International Corporation (NYSE:SXI) shareholders haven't noticed that the VP, CFO & Treasurer, Ademir Sarcevic, recently sold US$391k worth of stock at US$195 per share. That sale was 11% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Standex International

Standex International Insider Transactions Over The Last Year

Notably, that recent sale by VP, CFO & Treasurer Ademir Sarcevic was not the only time they sold Standex International shares this year. Earlier in the year, they fetched US$182 per share in a -US$690k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$190. 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. We note that the biggest single sale was only 16% of Ademir Sarcevic's holding.

Over the last year we saw more insider selling of Standex International shares, than buying. 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!

I will like Standex International better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Standex International insiders own 1.9% of the company, worth about US$42m. 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 Standex International Insiders?

The insider sales have outweighed the insider buying, at Standex International, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Case in point: We've spotted 4 warning signs for Standex International you should be aware of, and 1 of these can't be ignored.

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 of direct interests only, but not derivative transactions or indirect interests.

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