We wouldn't blame Applied Industrial Technologies, Inc. (NYSE:AIT) shareholders if they were a little worried about the fact that Warren Hoffner, a company insider, recently netted about US$1.1m selling shares at an average price of US$282. However, that sale only accounted for 6.6% of their holding, so arguably it doesn't say much about their conviction.
Applied Industrial Technologies Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, Neil Schrimsher, sold US$16m worth of shares at a price of US$170 per share. That means that even when the share price was below the current price of US$277, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 32% of Neil Schrimsher's holding.
Insiders in Applied Industrial Technologies didn't buy any shares in 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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Insider Ownership Of Applied Industrial Technologies
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. Applied Industrial Technologies insiders own 1.0% of the company, currently worth about US$100m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Applied Industrial Technologies Tell Us?
Insiders sold Applied Industrial Technologies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Applied Industrial Technologies 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Applied Industrial Technologies. At Simply Wall St, we found 1 warning sign for Applied Industrial Technologies that deserve your attention before buying any shares.
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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.