Shareholders May Not Overlook PowerFleet Insiders Selling US$1.8m In Stock

Despite the fact that PowerFleet, Inc. (NASDAQ:AIOT) stock rose 14% last week, insiders who sold US$1.8m worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$6.83, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At PowerFleet

The Chief Customer Officer, Catherine Lewis, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$7.05 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$5.12. So it may not tell us anything about how insiders feel about the current share price. Catherine Lewis was the only individual insider to sell over the last year.

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!

View our latest analysis for PowerFleet

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

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. We usually like to see fairly high levels of insider ownership. PowerFleet insiders own about US$50m worth of shares. That equates to 7.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About PowerFleet Insiders?

The fact that there have been no PowerFleet insider transactions recently certainly doesn't bother us. Our analysis of PowerFleet insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing PowerFleet. At Simply Wall St, we've found that PowerFleet has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

But note: PowerFleet 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.