Insiders Sold US$967k Of Energy Services of America Stock Possibly Sending Warning Sign

Despite the fact that Energy Services of America Corporation (NASDAQ:ESOA) stock rose 12% last week, insiders who sold US$967k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$16.42, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Energy Services of America Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board, Marshall Reynolds, sold US$557k worth of shares at a price of US$16.04 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$11.52. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 23.27k shares for US$250k. But they sold 58.93k shares for US$967k. In total, Energy Services of America insiders sold more than they bought over 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!

Check out our latest analysis for Energy Services of America

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of Energy Services of America shares, worth about US$47m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Energy Services of America Tell Us?

It doesn't really mean much that no insider has traded Energy Services of America shares in the last quarter. We don't take much encouragement from the transactions by Energy Services of America insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Energy Services of America. For instance, we've identified 2 warning signs for Energy Services of America (1 is a bit unpleasant) you should be aware of.

But note: Energy Services of America 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 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.