Don't Ignore The Fact That This Insider Just Sold Some Shares In Superior Drilling Products, Inc. (NYSEMKT:SDPI)

By
Simply Wall St
Published
January 29, 2021
NYSEAM:SDPI
Source: Shutterstock

Some Superior Drilling Products, Inc. (NYSEMKT:SDPI) shareholders may be a little concerned to see that insider Reid Walker recently sold a substantial US$641k worth of stock at a price of US$0.85 per share. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.

See our latest analysis for Superior Drilling Products

The Last 12 Months Of Insider Transactions At Superior Drilling Products

Notably, that recent sale by insider Reid Walker was not the only time they traded Superior Drilling Products shares this year. They previously purchased US$739k worth of shares at a price of US$0.65 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.14. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
AMEX:SDPI Insider Trading Volume January 29th 2021

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Superior Drilling Products insiders own 21% of the company, worth about US$6.3m. 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 Do The Superior Drilling Products Insider Transactions Indicate?

An insider hasn't bought Superior Drilling Products stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. And insiders do own shares. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Superior Drilling Products has 6 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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, 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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