Quest Resource Holding Insiders May Regret Not Buying More, Market Cap Hits US$194m

Insiders who bought Quest Resource Holding Corporation (NASDAQ:QRHC) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$19m as a result of the stock's 11% gain over the same period. As a result, the stock they originally bought for US$151.0k is now worth US$240.0k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Quest Resource Holding

The Last 12 Months Of Insider Transactions At Quest Resource Holding

The Senior VP Brett Johnston made the biggest insider purchase in the last 12 months. That single transaction was for US$106k worth of shares at a price of US$5.89 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$9.60. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Quest Resource Holding insiders were buying shares, but not selling. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership Of Quest Resource Holding

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Quest Resource Holding insiders own about US$5.1m worth of shares (which is 2.6% of the company). We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Quest Resource Holding Tell Us?

It doesn't really mean much that no insider has traded Quest Resource Holding shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Quest Resource Holding insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Quest Resource Holding. In terms of investment risks, we've identified 2 warning signs with Quest Resource Holding and understanding these should be part of your investment process.

Of course Quest Resource Holding 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.