Independent Director Of ProPetro Holding Sold 43% Of Their Shares

We'd be surprised if ProPetro Holding Corp. (NYSE:PUMP) shareholders haven't noticed that the Independent Director, G. Lawrence, recently sold US$293k worth of stock at US$10.84 per share. The eyebrow raising move amounted to a reduction of 43% in their holding.

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The Last 12 Months Of Insider Transactions At ProPetro Holding

The President & COO, Adam Munoz, made the biggest insider sale in the last 12 months. That single transaction was for US$365k worth of shares at a price of US$4.87 each. That means that an insider was selling shares at slightly below the current price (US$10.17). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 46% of Adam Munoz's holding.

In the last twelve months insiders purchased 6.90k shares for US$34k. But insiders sold 119.05k shares worth US$806k. Over the last year we saw more insider selling of ProPetro Holding shares, than buying. 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!

See our latest analysis for ProPetro Holding

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Does ProPetro Holding Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. ProPetro Holding insiders own about US$88m worth of shares. That equates to 7.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About ProPetro Holding Insiders?

Unfortunately, there has been more insider selling of ProPetro Holding stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While it's good to be aware of 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of ProPetro Holding.

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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.