Have Insiders Sold Energy Services of America Shares Recently?

Some Energy Services of America Corporation (NASDAQ:ESOA) shareholders may be a little concerned to see that the Chairman of the Board, Marshall Reynolds, recently sold a substantial US$713k worth of stock at a price of US$9.50 per share. However, that sale only accounted for 4.5% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Energy Services of America

The Last 12 Months Of Insider Transactions At Energy Services of America

Notably, that recent sale by Marshall Reynolds is the biggest insider sale of Energy Services of America shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$9.60. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. It is worth noting that this sale was only 4.5% of Marshall Reynolds's holding.

In the last twelve months insiders purchased 57.32k shares for US$406k. On the other hand they divested 342.73k shares, for US$3.0m. Over the last year we saw more insider selling of Energy Services of America shares, than buying. They sold for an average price of about US$8.61. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Energy Services of America Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 32% of Energy Services of America shares, worth about US$51m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Energy Services of America Insiders?

Unfortunately, there has been more insider selling of Energy Services of America stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Energy Services of America makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Energy Services of America (1 is a bit unpleasant!) that we believe deserve your full attention.

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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.