This Insider Has Just Sold Shares In Network-1 Technologies, Inc. (NYSEMKT:NTIP)

We'd be surprised if Network-1 Technologies, Inc. (NYSEMKT:NTIP) shareholders haven't noticed that an insider, Steven Heinemann, recently sold US$225k worth of stock at US$3.72 per share. On the bright side, that sale was only 2.3% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Network-1 Technologies

Network-1 Technologies Insider Transactions Over The Last Year

In fact, the recent sale by insider Steven Heinemann was not their only sale of Network-1 Technologies shares this year. Earlier in the year, they fetched US$3.05 per share in a -US$300k sale. That means that even when the share price was below the current price of US$3.75, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 3.6% of Steven Heinemann's stake.

In the last year Network-1 Technologies 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. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Network-1 Technologies 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Network-1 Technologies insiders own about US$41m worth of shares (which is 45% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Network-1 Technologies Tell Us?

Insiders haven't bought Network-1 Technologies stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Network-1 Technologies (1 makes us a bit uncomfortable!) and we strongly recommend you look at these before investing.

But note: Network-1 Technologies 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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