This Insider Has Just Sold Shares In McGrath RentCorp (NASDAQ:MGRC)

We'd be surprised if McGrath RentCorp (NASDAQ:MGRC) shareholders haven't noticed that an insider, Kay Dashner, recently sold US$237k worth of stock at US$79.00 per share. The eyebrow raising move amounted to a reduction of 34% in their holding.

Check out our latest analysis for McGrath RentCorp

The Last 12 Months Of Insider Transactions At McGrath RentCorp

The VP, Controller & Principal Accounting Officer, David Whitney, made the biggest insider sale in the last 12 months. That single transaction was for US$769k worth of shares at a price of US$64.06 each. That means that even when the share price was below the current price of US$76.90, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was 71% of David Whitney's stake.

Insiders in McGrath RentCorp didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does McGrath RentCorp Boast High 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. Insiders own 0.9% of McGrath RentCorp shares, worth about US$16m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The McGrath RentCorp Insider Transactions Indicate?

Insiders haven't bought McGrath RentCorp stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since McGrath RentCorp is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of McGrath RentCorp.

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.

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