Despite Hitting US$4.96, KLX Energy Services Holdings Insiders Still Sold Too Soon

Even though KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) has fallen by 10% over the past week , insiders who sold US$54k worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$6.93 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for KLX Energy Services Holdings

KLX Energy Services Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior VP & Chief Accounting Officer, Geoffrey Stanford, for US$54k worth of shares, at about US$6.93 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$4.96. So it is hard to draw any strong conclusion from it. Geoffrey Stanford was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like KLX Energy Services Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

KLX Energy Services Holdings Insiders Are Selling The Stock

The last three months saw significant insider selling at KLX Energy Services Holdings. In total, Senior VP & Chief Accounting Officer Geoffrey Stanford dumped US$54k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does KLX Energy Services Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, KLX Energy Services Holdings insiders have about 4.5% of the stock, worth approximately US$4.0m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At KLX Energy Services Holdings Tell Us?

An insider sold KLX Energy Services Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. While it's good to be aware of 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. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of KLX Energy Services Holdings.

But note: KLX Energy Services Holdings 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.