Cactus Executive VP & CEO of the Spoolable Pipe Segment Stephen Tadlock Sells 48% Of Holding

We wouldn't blame Cactus, Inc. (NYSE:WHD) shareholders if they were a little worried about the fact that Stephen Tadlock, the Executive VP & CEO of the Spoolable Pipe Segment recently netted about US$2.1m selling shares at an average price of US$61.35. That's a big disposal, and it decreased their holding size by 48%, which is notable but not too bad.

See our latest analysis for Cactus

Cactus Insider Transactions Over The Last Year

The CEO & Chairman of the Board, Scott Bender, made the biggest insider sale in the last 12 months. That single transaction was for US$31m worth of shares at a price of US$52.03 each. That means that even when the share price was below the current price of US$62.17, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 93% of Scott Bender's stake.

Insiders in Cactus didn't buy any shares in the last year. 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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Does Cactus 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Cactus insiders own about US$26m worth of shares. That equates to 0.5% 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 Cactus Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Cactus is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. 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. In terms of investment risks, we've identified 1 warning sign with Cactus and understanding this should be part of your investment process.

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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.