Have Insiders Sold Archrock Shares Recently?

Some Archrock, Inc. (NYSE:AROC) shareholders may be a little concerned to see that insider Jeffery Hildebrand recently sold a substantial US$16m worth of stock at a price of US$14.28 per share. That's a big disposal, and it decreased their holding size by 13%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Archrock

In fact, the recent sale by insider Jeffery Hildebrand was not their only sale of Archrock shares this year. Earlier in the year, they fetched US$13.03 per share in a -US$18m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$14.52. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.7%of Jeffery Hildebrand's holding.

In the last year Archrock insiders didn't buy any company stock. 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!

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

Does Archrock Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Archrock insiders own 7.4% of the company, currently worth about US$169m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Archrock Insiders?

An insider sold Archrock shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Archrock is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For instance, we've identified 3 warning signs for Archrock (2 are concerning) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.