Have National Research Corporation (NASDAQ:NRC) Insiders Been Selling Their Stock?

By
Simply Wall St
Published
April 11, 2022
NasdaqGS:NRC
Source: Shutterstock

Anyone interested in National Research Corporation (NASDAQ:NRC) should probably be aware that the Founder, Michael Hays, recently divested US$331k worth of shares in the company, at an average price of US$40.71 each. However, the silver lining is that the sale only reduced their total holding by 0.1%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for National Research

National Research Insider Transactions Over The Last Year

In fact, the recent sale by Founder Michael Hays was not their only sale of National Research shares this year. Earlier in the year, they fetched US$43.01 per share in a -US$5.5m sale. So we know that an insider sold shares at around the present share price of US$39.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

National Research insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:NRC Insider Trading Volume April 11th 2022

I will like National Research better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of National Research

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. National Research insiders own 45% of the company, currently worth about US$435m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About National Research Insiders?

An insider hasn't bought National Research stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - National Research has 2 warning signs we think you should be aware of.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.