Don't Ignore The Insider Selling In Mammoth Energy Services

Investors may wish to note that the Independent Director of Mammoth Energy Services, Inc., Corey Booker, recently netted US$86k from selling stock, receiving an average price of US$3.45. It might not be a huge sale, but it did reduce their holding size 20%, hardly encouraging.

Check out our latest analysis for Mammoth Energy Services

Mammoth Energy Services Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Arty Straehla, sold US$528k worth of shares at a price of US$4.44 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.58. So it is hard to draw any strong conclusion from it.

Over the last year we saw more insider selling of Mammoth Energy Services shares, than buying. 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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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 4.8% of Mammoth Energy Services shares, worth about US$8.3m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Do The Mammoth Energy Services Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Mammoth Energy Services has 1 warning sign we think you should be aware of.

Of course Mammoth Energy Services may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.