Have Intrepid Potash Insiders Been Selling Stock?

Some Intrepid Potash, Inc. (NYSE:IPI) shareholders may be a little concerned to see that insider Robert Jornayvaz recently sold a substantial US$1.8m worth of stock at a price of US$34.30 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 93% of their entire holding.

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Intrepid Potash Insider Transactions Over The Last Year

In fact, the recent sale by insider Robert Jornayvaz was not their only sale of Intrepid Potash shares this year. They previously made an even bigger sale of -US$6.2m worth of shares at a price of US$26.24 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$35.89. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 66% of Robert Jornayvaz's stake.

Robert Jornayvaz ditched 373.04k shares over the year. The average price per share was US$26.75. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Intrepid Potash

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Intrepid Potash 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. 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 2.9% of Intrepid Potash shares, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Intrepid Potash Tell Us?

An insider sold Intrepid Potash shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Intrepid Potash. Our analysis shows 2 warning signs for Intrepid Potash (1 is potentially serious!) and we strongly recommend you look at them before investing.

But note: Intrepid Potash may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.