Don't Ignore The Fact That This Insider Just Sold Some Shares In KLX Energy Services Holdings, Inc. (NASDAQ:KLXE)

By
Simply Wall St
Published
March 21, 2022
NasdaqGS:KLXE
Source: Shutterstock

Anyone interested in KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) should probably be aware that the Executive VP, Max Bouthillette, recently divested US$109k worth of shares in the company, at an average price of US$8.43 each. That sale was 15% of their holding, so it does make us raise an eyebrow.

See our latest analysis for KLX Energy Services Holdings

The Last 12 Months Of Insider Transactions At KLX Energy Services Holdings

Notably, that recent sale by Max Bouthillette is the biggest insider sale of KLX Energy Services Holdings shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$6.67). So it is hard to draw any strong conclusion from it.

KLX Energy Services Holdings 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:KLXE Insider Trading Volume March 21st 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of KLX Energy Services Holdings

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 17% of KLX Energy Services Holdings shares, worth about US$12m. 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 KLX Energy Services Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Our analysis shows 8 warning signs for KLX Energy Services Holdings (3 don't sit too well with us!) and we strongly recommend you look at them before investing.

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, but not derivative transactions.

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