Have Insiders Sold Napco Security Technologies Shares Recently?

We wouldn't blame Napco Security Technologies, Inc. (NASDAQ:NSSC) shareholders if they were a little worried about the fact that Richard Soloway, the Founder recently netted about US$11m selling shares at an average price of US$44.20. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

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Napco Security Technologies Insider Transactions Over The Last Year

In fact, the recent sale by Founder Richard Soloway was not their only sale of Napco Security Technologies shares this year. Earlier in the year, they fetched US$40.75 per share in a -US$81m sale. That means that even when the share price was below the current price of US$44.63, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 54% of Richard Soloway's stake.

Napco Security Technologies insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Napco Security Technologies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Napco Security Technologies insiders own about US$82m worth of shares. That equates to 5.0% 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 Napco Security Technologies Insiders?

Insiders sold Napco Security Technologies shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Napco Security Technologies 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. 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 - Napco Security Technologies has 1 warning sign we think you should be aware of.

Of course Napco Security Technologies 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.