Don't Ignore The Insider Selling In Insperity

Some Insperity, Inc. (NYSE:NSP) shareholders may be a little concerned to see that the Co-Founder, Paul Sarvadi, recently sold a substantial US$1.5m worth of stock at a price of US$92.23 per share. However, that sale only accounted for 1.2% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Insperity

The Last 12 Months Of Insider Transactions At Insperity

Over the last year, we can see that the biggest insider sale was by the Director, Richard Rawson, for US$2.2m worth of shares, at about US$111 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$91.62. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Insperity didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Insperity Boast High 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. Insperity insiders own about US$184m worth of shares (which is 5.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Insperity Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For example, Insperity has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

Of course Insperity 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.