Chairman Christopher French Just Bought A Handful Of Shares In Shenandoah Telecommunications Company (NASDAQ:SHEN)

By
Simply Wall St
Published
May 08, 2022
NasdaqGS:SHEN
Source: Shutterstock

Investors who take an interest in Shenandoah Telecommunications Company (NASDAQ:SHEN) should definitely note that the Chairman, Christopher French, recently paid US$19.37 per share to buy US$201k worth of the stock. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

Check out our latest analysis for Shenandoah Telecommunications

Shenandoah Telecommunications Insider Transactions Over The Last Year

The insider, William Pirtle, made the biggest insider sale in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$51.12 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$21.00. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$212k for 10.89k shares. But they sold 82.07k shares for US$4.2m. All up, insiders sold more shares in Shenandoah Telecommunications than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:SHEN Insider Trading Volume May 7th 2022

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Shenandoah Telecommunications 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. We usually like to see fairly high levels of insider ownership. It appears that Shenandoah Telecommunications insiders own 4.2% of the company, worth about US$44m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Shenandoah Telecommunications Tell Us?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. While recent transactions indicate confidence in Shenandoah Telecommunications, insiders don't own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. 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. Case in point: We've spotted 2 warning signs for Shenandoah Telecommunications you should be aware of.

Of course Shenandoah Telecommunications 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, but not derivative transactions.

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