This Insider Has Just Sold Shares In Research Solutions

Anyone interested in Research Solutions, Inc. (NASDAQ:RSSS) should probably be aware that a company insider, Peter Derycz, recently divested US$199k worth of shares in the company, at an average price of US$2.87 each. However, the silver lining is that the sale only reduced their total holding by 2.3%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Research Solutions

Research Solutions Insider Transactions Over The Last Year

In fact, the recent sale by insider Peter Derycz was not their only sale of Research Solutions shares this year. They previously made an even bigger sale of -US$254k worth of shares at a price of US$2.71 per share. That means that even when the share price was below the current price of US$3.28, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.9% of Peter Derycz's holding.

Peter Derycz ditched 365.74k shares over the year. The average price per share was US$2.68. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Research Solutions 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Research Solutions insiders own about US$23m worth of shares. That equates to 27% of the company. 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 Research Solutions Insiders?

An insider sold Research Solutions shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Research Solutions has 4 warning signs we think you should be aware of.

But note: Research Solutions 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.