Possible Bearish Signals With Napco Security Technologies Insiders Disposing Stock

In the last year, many Napco Security Technologies, Inc. (NASDAQ:NSSC) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

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.

View our latest analysis for Napco Security Technologies

Napco Security Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Richard Soloway, sold US$82m worth of shares at a price of US$40.75 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$36.54). So it may not shed much light on insider confidence at current levels.

Insiders in Napco Security Technologies didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Does Napco Security Technologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. Napco Security Technologies insiders own about US$58m worth of shares. That equates to 4.3% 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 Napco Security Technologies Insiders?

It doesn't really mean much that no insider has traded Napco Security Technologies shares in the last quarter. We don't take much encouragement from the transactions by Napco Security Technologies insiders. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Napco Security Technologies, you should check out this free report on analyst forecasts for the company.

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.