We'd be surprised if The ExOne Company (NASDAQ:XONE) shareholders haven't noticed that the Director, John Irvin, recently sold US$271k worth of stock at US$10.86 per share. On the bright side, that sale was only 9.6% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At ExOne
Notably, that recent sale by John Irvin is the biggest insider sale of ExOne shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$10.84. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 51.57k shares for US$242k. But insiders sold 37.50k shares worth US$406k. John Irvin ditched 37.50k shares over the year. The average price per share was US$10.83. 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 ExOne 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 ExOne 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. Insiders own 26% of ExOne shares, worth about US$54m. 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 ExOne Insider Transactions Indicate?
An insider sold ExOne shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of ExOne.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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