Some McGrath RentCorp (NASDAQ:MGRC) shareholders may be a little concerned to see that the VP, Corporate Controller & Principal Accounting Officer, David Whitney, recently sold a substantial US$640k worth of stock at a price of US$102 per share. That sale reduced their total holding by 44% which is hardly insignificant, but far from the worst we've seen.
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The Last 12 Months Of Insider Transactions At McGrath RentCorp
In fact, the recent sale by David Whitney was the biggest sale of McGrath RentCorp shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$99.50. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
McGrath RentCorp insiders didn't buy any shares 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!
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Does McGrath RentCorp 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. McGrath RentCorp insiders own about US$16m worth of shares. That equates to 0.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About McGrath RentCorp Insiders?
Insiders haven't bought McGrath RentCorp 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. But it is good to see that McGrath RentCorp is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. For example - McGrath RentCorp has 3 warning signs we think you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.