We wouldn't blame IDT Corporation (NYSE:IDT) shareholders if they were a little worried about the fact that David Wartell, the Chief Technology Officer recently netted about US$806k selling shares at an average price of US$47.11. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

The Last 12 Months Of Insider Transactions At IDT

In the last twelve months, the biggest single sale by an insider was when the President, Abilio Pereira, sold US$1.4m worth of shares at a price of US$47.24 per share. That means that an insider was selling shares at below the current price (US$48.20). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 40% of Abilio Pereira's stake.

Insiders in IDT didn't buy any shares in the last year. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of IDT

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that IDT insiders own 19% of the company, worth about US$227m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About IDT Insiders?

Insiders haven't bought IDT 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. But since IDT is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 that end, you should learn about the 2 warning signs we've spotted with IDT (including 1 which makes us a bit uncomfortable).

Of course IDT 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 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.