Don't Ignore The Insider Selling In Medpace Holdings

We wouldn't blame Medpace Holdings, Inc. (NASDAQ:MEDP) shareholders if they were a little worried about the fact that August Troendle, the Chairman & CEO recently netted about US$62m selling shares at an average price of US$611. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.8%.

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The Last 12 Months Of Insider Transactions At Medpace Holdings

In fact, the recent sale by August Troendle was the biggest sale of Medpace Holdings shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$607. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year we saw more insider selling of Medpace Holdings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Medpace Holdings

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Insider Ownership Of Medpace Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Medpace Holdings insiders own 20% of the company, currently worth about US$3.4b 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.

What Might The Insider Transactions At Medpace Holdings Tell Us?

Insiders haven't bought Medpace Holdings stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Medpace Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Medpace Holdings. At Simply Wall St, we found 1 warning sign for Medpace Holdings that deserve your attention before buying any shares.

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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.