This Insider Has Just Sold Shares In Insperity

We wouldn't blame Insperity, Inc. (NYSE:NSP) shareholders if they were a little worried about the fact that Paul Sarvadi, the Co-Founder recently netted about US$1.9m selling shares at an average price of US$101. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

View our latest analysis for Insperity

Insperity Insider Transactions Over The Last Year

Notably, that recent sale by Co-Founder Paul Sarvadi was not the only time they sold Insperity shares this year. They previously made an even bigger sale of -US$4.7m worth of shares at a price of US$118 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$100. So it may not shed much light on insider confidence at current levels.

Insperity insiders didn't buy any shares over 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 Of Insperity

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 5.3% of the company, currently worth about US$205m based on the recent share price. 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?

An insider sold Insperity shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Insperity is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. While conducting our analysis, we found that Insperity has 1 warning sign and it would be unwise to ignore this.

But note: Insperity may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.