Don't Ignore The Fact That This Insider Just Sold Some Shares In American Public Education, Inc. (NASDAQ:APEI)

By
Simply Wall St
Published
December 02, 2020

Investors may wish to note that the Independent Director of American Public Education, Inc., Jean Halle, recently netted US$54k from selling stock, receiving an average price of US$30.95. It might not be a huge sale, but it did reduce their holding size 11%, hardly encouraging.

Check out our latest analysis for American Public Education

American Public Education Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director Jean Halle was not the only time they sold American Public Education shares this year. Earlier in the year, they fetched US$35.71 per share in a -US$177k sale. That means that an insider was selling shares at around the current price of US$31.16. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

American Public Education insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:APEI Insider Trading Volume December 2nd 2020

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of American Public Education

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 appears that American Public Education insiders own 3.3% of the company, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About American Public Education Insiders?

Insiders haven't bought American Public Education stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, American Public Education makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Public Education. In terms of investment risks, we've identified 1 warning sign with American Public Education and understanding it should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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