Have Mammoth Energy Services, Inc. (NASDAQ:TUSK) Insiders Been Selling Their Stock?

Some Mammoth Energy Services, Inc. (NASDAQ:TUSK) shareholders may be a little concerned to see that the CEO & Director, Arty Straehla, recently sold a substantial US$796k worth of stock at a price of US$5.34 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

Check out our latest analysis for Mammoth Energy Services

The Last 12 Months Of Insider Transactions At Mammoth Energy Services

In fact, the recent sale by Arty Straehla was the biggest sale of Mammoth Energy Services shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$5.80. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Arty Straehla's holding.

In total, Mammoth Energy Services insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. Our data suggests Mammoth Energy Services insiders own 1.7% of the company, worth about US$4.5m. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Mammoth Energy Services Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Mammoth Energy Services.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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This article by Simply Wall St is general in nature. 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.
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