IDEXX Laboratories Independent Director M. Szostak Sells 49% Of Holding

We wouldn't blame IDEXX Laboratories, Inc. (NASDAQ:IDXX) shareholders if they were a little worried about the fact that M. Szostak, the Independent Director recently netted about US$1.4m selling shares at an average price of US$466. That sale reduced their total holding by 49% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for IDEXX Laboratories

IDEXX Laboratories Insider Transactions Over The Last Year

Notably, that recent sale by M. Szostak is the biggest insider sale of IDEXX Laboratories 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$464. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

IDEXX Laboratories insiders didn't buy any shares over the last year. 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!

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Does IDEXX Laboratories Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. IDEXX Laboratories insiders own 1.0% of the company, currently worth about US$372m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The IDEXX Laboratories Insider Transactions Indicate?

Insiders sold IDEXX Laboratories shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, IDEXX Laboratories makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 IDEXX Laboratories 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.