We'd be surprised if McGrath RentCorp (NASDAQ:MGRC) shareholders haven't noticed that the VP & Division Manager of Adler Tank Rentals, Kristina Van Trease-Whitney, recently sold US$124k worth of stock at US$75.57 per share. On the bright side, that sale was only 8.8% of their holding, so we doubt it's very meaningful, on its own.
McGrath RentCorp Insider Transactions Over The Last Year
In fact, the recent sale by VP & Division Manager of Adler Tank Rentals Kristina Van Trease-Whitney was not their only sale of McGrath RentCorp shares this year. Earlier in the year, they fetched US$68.87 per share in a -US$461.9k sale. That means that even when the share price was below the current price of US$73.73, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 27% of Kristina Van Trease-Whitney's holding.
In the last twelve months insiders netted US$4.4m for 69054 shares sold. Insiders in McGrath RentCorp didn't buy any shares in the last year. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. Insiders own 0.8% of McGrath RentCorp shares, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About McGrath RentCorp Insiders?
Insiders sold McGrath RentCorp shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Of course, the future is what matters most. So if you are interested in McGrath RentCorp, you should check out this free report on analyst forecasts for the company.
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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, but not derivative transactions.
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