This Insider Has Just Sold Shares In Natural Gas Services Group

We wouldn't blame Natural Gas Services Group, Inc. (NYSE:NGS) shareholders if they were a little worried about the fact that Stephen Taylor, the Chairman recently netted about US$623k selling shares at an average price of US$24.90. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.5%.

Our free stock report includes 2 warning signs investors should be aware of before investing in Natural Gas Services Group. Read for free now.

The Last 12 Months Of Insider Transactions At Natural Gas Services Group

Notably, that recent sale by Stephen Taylor is the biggest insider sale of Natural Gas Services Group shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$24.87. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Stephen Taylor divested 38.18k shares over the last 12 months at an average price of US$25.25. 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!

See our latest analysis for Natural Gas Services Group

I will like Natural Gas Services Group 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.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 4.0% of Natural Gas Services Group shares, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Natural Gas Services Group Tell Us?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Natural Gas Services Group is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Natural Gas Services Group.

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 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.