Insiders can sell for a whole host of reasons which have nothing to do with the company's anticipated performance. I know from whence I speak. I've been there.
The key in my mind is how much of an insider's position is being liquidated. If the percentage is substantial, your case has some merit. Even then, a guy could be splitting up with his wife and settling with her, or any number of other things. Paul
The insider selling has been a constant for a long time now. Of course, it did catch my eye too.
I investigated this to find out if it is significant or not. According to "CDA/Investnet", which is an Insider Selling rating service, the insider selling is "NEUTRAL". I don't have a web site address for them, but I found this out through a "Thomson Company Report", which is available to me over the internet through my online broker.
I also did some of my own math. Mr. Geerlings has sold only 2.5% of his shares this year. Hardly meaningful. Maybe a summer home, a boat, who knows.
Mr. Wade seems to be on a systematic cashing out. He has sold 11% of his stake this year. He seems to sell every qtr. no matter the price. I'm do not know what his role in GEER is these days.
There was Insider Buying, too. This is a First! A Director and the CEO and the CFO. Now that may indicate a sea change of insider outlook.
While insider selling is typically a concern one must look at the source of the selling. Neither of Messrs. Geerlings nor Wade are involved in the operations of this company and have not been for over a year. These poor guys came public with a lot of fanfare a number of years ago (Inc. 100 and other honors). They then proceeded to miss quarterly estimates. In short they were good entrepeneurs with a great idea but lousy executors and not savvy to running a public co. In came Essa and the new management team. It has taken a few quarters for them to get acclimated but I think they've got it now. Messrs. Geerlings and Wade, Wade especially, like most entrepeneurs thought if they couldn't do it nobody could. As a result they, especially Wade, have been regular sellers during the insider windows allowing such sales. They may continue because of the price or they may stop, seeing that this thing is now working, and it is.
In short, the insider selling is irrelevant. What is positive is the buying by the CEO, CFO and directors.