Anyone interested in Perma-Fix Environmental Services, Inc. (NASDAQ:PESI) should probably be aware that the Independent Director, Joe Reeder, recently divested US$224k worth of shares in the company, at an average price of US$11.53 each. However, the silver lining is that the sale only reduced their total holding by 7.9%, so we’re hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Perma-Fix Environmental Services
Notably, that recent sale by Joe Reeder is the biggest insider sale of Perma-Fix Environmental Services shares that we’ve seen in the last year. So we know that an insider sold shares at around the present share price of US$10.87. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Happily, we note that in the last year insiders paid US$68k for 15.31k shares. But insiders sold 19.39k shares worth US$224k. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Perma-Fix Environmental Services better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Perma-Fix Environmental Services
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Perma-Fix Environmental Services insiders own 7.8% of the company, worth about US$11m. 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 Perma-Fix Environmental Services Tell Us?
An insider sold Perma-Fix Environmental Services shares recently, but they didn’t buy any. Zooming out, the longer term picture doesn’t give us much comfort. While insiders do own shares, they don’t own a heap, and they have been selling. 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. Every company has risks, and we’ve spotted 2 warning signs for Perma-Fix Environmental Services you should know about.
But note: Perma-Fix Environmental Services 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.
Valuation is complex, but we’re helping make it simple.
Find out whether Perma-Fix Environmental Services is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Source : Simply Wall