Medpace Holdings Insiders Sell US$187m Of Stock, Possibly Signalling Caution

The fact that multiple Medpace Holdings, Inc. (NASDAQ:MEDP) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Medpace Holdings

Medpace Holdings Insider Transactions Over The Last Year

The Chairman & CEO, August Troendle, made the biggest insider sale in the last 12 months. That single transaction was for US$82m worth of shares at a price of US$413 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$319. So it is hard to draw any strong conclusion from it.

In total, Medpace Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Have Medpace Holdings Insiders Traded Recently?

There was only a small bit of insider buying, worth US$652, in the last three months. Overall, we don't think these recent trades are particularly informative, one way or the other.

Insider Ownership Of Medpace Holdings

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Medpace Holdings insiders own about US$1.8b worth of shares (which is 18% of the company). 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 Medpace Holdings Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Medpace Holdings insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Medpace Holdings, you should check out this free report on analyst forecasts for the company.

Of course Medpace Holdings 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.