Have NV5 Global Insiders Been Selling Stock?

Anyone interested in NV5 Global, Inc. (NASDAQ:NVEE) should probably be aware that the Executive VP & General Counsel, Richard Tong, recently divested US$293k worth of shares in the company, at an average price of US$94.00 each. The eyebrow raising move amounted to a reduction of 16% in their holding.

View our latest analysis for NV5 Global

NV5 Global Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive Vice President, Donald Alford, for US$500k worth of shares, at about US$100 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$90.05. So it may not tell us anything about how insiders feel about the current share price.

Insiders in NV5 Global didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that NV5 Global insiders own 12% of the company, worth about US$179m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At NV5 Global Tell Us?

Insiders haven't bought NV5 Global stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for NV5 Global that deserve your attention before buying any shares.

Of course NV5 Global may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com