Insight Enterprises Insiders Sell US$7.6m Of Stock, Possibly Signalling Caution

Many Insight Enterprises, Inc. (NASDAQ:NSIT) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Insight Enterprises

The Last 12 Months Of Insider Transactions At Insight Enterprises

The President, Joyce Mullen, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$201 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$161. So it may not tell us anything about how insiders feel about the current share price.

In the last year Insight Enterprises insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Insight Enterprises better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At Insight Enterprises Have Sold Stock Recently

The last quarter saw substantial insider selling of Insight Enterprises shares. In total, Chief Human Resources Officer Jennifer Vasin dumped US$152k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Insight Enterprises

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Insight Enterprises insiders own 1.3% of the company, worth about US$67m. 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 Do The Insight Enterprises Insider Transactions Indicate?

An insider hasn't bought Insight Enterprises stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Insight Enterprises is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Insight Enterprises. Case in point: We've spotted 1 warning sign for Insight Enterprises you should be aware of.

But note: Insight Enterprises 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.