Don't Ignore The Insider Selling In Plexus

We'd be surprised if Plexus Corp. (NASDAQ:PLXS) shareholders haven't noticed that the CEO & Director, Todd Kelsey, recently sold US$436k worth of stock at US$103 per share. On the bright side, that sale was only 3.5% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Plexus

Plexus Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Director Todd Kelsey was not their only sale of Plexus shares this year. Earlier in the year, they fetched US$95.48 per share in a -US$665k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$103. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 just 5.0% of Todd Kelsey's stake.

In the last year Plexus insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Plexus better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Plexus 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. It appears that Plexus insiders own 2.2% of the company, worth about US$62m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Plexus Insider Transactions Indicate?

Insiders haven't bought Plexus 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. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Plexus. You'd be interested to know, that we found 3 warning signs for Plexus and we suggest you have a look.

But note: Plexus 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.