Insiders in ARC Document Solutions, Inc. (NYSE:ARC) were left out from last week's 12% gains after selling stock earlier in the year

While it’s been a great week for ARC Document Solutions, Inc. (NYSE:ARC) shareholders after stock gained 12%, not so much for insiders who sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.

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.

View our latest analysis for ARC Document Solutions

The Last 12 Months Of Insider Transactions At ARC Document Solutions

Over the last year, we can see that the biggest insider sale was by the Chief Technology Officer, Rahul Roy, for US$147k worth of shares, at about US$2.70 per share. That means that an insider was selling shares at slightly below the current price (US$4.17). 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 just 12% of Rahul Roy's stake. Rahul Roy was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insider Ownership of ARC Document Solutions

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. ARC Document Solutions insiders own about US$27m worth of shares. That equates to 15% of the company. 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 Does This Data Suggest About ARC Document Solutions Insiders?

The fact that there have been no ARC Document Solutions insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by ARC Document Solutions insiders. But it's good to see that insiders own shares in the company. While we like knowing 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. Every company has risks, and we've spotted 1 warning sign for ARC Document Solutions you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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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.