Don't Ignore The Insider Selling In Liquidity Services

Anyone interested in Liquidity Services, Inc. (NASDAQ:LQDT) should probably be aware that the Chief Technology Officer, Steven Weiskircher, recently divested US$138k worth of shares in the company, at an average price of US$27.97 each. However, the silver lining is that the sale only reduced their total holding by 9.7%, so we're hesitant to read anything much into it, on its own.

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Liquidity Services Insider Transactions Over The Last Year

The Director, Jaime Mateus-Tique, made the biggest insider sale in the last 12 months. That single transaction was for US$4.9m worth of shares at a price of US$33.47 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$30.21. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Liquidity Services didn't buy any shares in 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!

Check out our latest analysis for Liquidity Services

I will like Liquidity Services 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

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. Liquidity Services insiders own 25% of the company, currently worth about US$232m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Liquidity Services Tell Us?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since Liquidity Services is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Liquidity Services and we suggest you have a look.

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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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.