Have Insiders Been Buying ASGN Incorporated (NYSE:ASGN) Shares This Year?
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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in ASGN Incorporated (NYSE:ASGN).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for ASGN
ASGN Insider Transactions Over The Last Year
Director Edwin Sheridan made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$65.33 each. That means that even when the share price was higher than US$55.37 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Over the last year, we can see that insiders have bought 55450 shares worth US$3.7m. But insiders sold 27167 shares worth US$2.5m. In the last twelve months there was more buying than selling by ASGN insiders. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at ASGN Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at ASGN. In total, Independent Director William Brock sold US$91k worth of shares in that time. Meanwhile Chairman Jeremy Jones bought US$31k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Does ASGN 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. It's great to see that ASGN insiders own 4.7% of the company, worth about US$137m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At ASGN Tell Us?
Unfortunately, there has been more insider selling of ASGN stock, than buying, in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're happy to look past recent trading. Of course, the future is what matters most. So if you are interested in ASGN, you should check out this free report on analyst forecasts for the company.
Of course ASGN may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
