Don't Ignore The Insider Selling In Benchmark Electronics

Anyone interested in Benchmark Electronics, Inc. (NYSE:BHE) should probably be aware that the Independent Director, Anne De Greef-Safft, recently divested US$493k worth of shares in the company, at an average price of US$82.10 each. That sale was 15% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Benchmark Electronics

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Kenneth Lamneck, sold US$2.0m worth of shares at a price of US$81.49 per share. So what is clear is that an insider saw fit to sell at around the current price of US$80.49. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Benchmark Electronics insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Benchmark Electronics

I will like Benchmark Electronics 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.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 2.0% of Benchmark Electronics shares, worth about US$60m. 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 Benchmark Electronics Insider Transactions Indicate?

An insider hasn't bought Benchmark Electronics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Benchmark Electronics makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Benchmark Electronics.

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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.