Have Insiders Sold American Vanguard Shares Recently?

We wouldn't blame American Vanguard Corporation (NYSE:AVD) shareholders if they were a little worried about the fact that Eric Wintemute, the Chairman recently netted about US$572k selling shares at an average price of US$5.72. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.

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American Vanguard Insider Transactions Over The Last Year

Notably, that recent sale by Eric Wintemute is the biggest insider sale of American Vanguard shares that we've seen in the last year. That means that even when the share price was below the current price of US$6.13, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 10% of Eric Wintemute's holding.

In the last twelve months insiders purchased 49.99k shares for US$462k. But they sold 105.00k shares for US$601k. Over the last year we saw more insider selling of American Vanguard shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does American Vanguard Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 7.2% of American Vanguard shares, worth about US$13m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About American Vanguard Insiders?

Insiders sold American Vanguard shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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 instance, we've identified 4 warning signs for American Vanguard (2 can't be ignored) you should be aware of.

Of course American Vanguard may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.