We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in ManTech International Corporation (NASDAQ:MANT).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
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’.
ManTech International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by President Kevin Phillips for US$1.7m worth of shares, at about US$65.83 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$54.33. So it is hard to draw any strong conclusion from it.
Over the last year, we note insiders sold 56.04k shares worth US$3.4m. All up, insiders sold more shares in ManTech International than they bought, over the last year. The average sell price was around US$60.73. It’s not ideal to see that insiders have sold at around the current price of US$54.33. While some insiders have decided to take some money off the table, we wouldn’t put too much weight on this fact. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like ManTech International better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. ManTech International insiders own about US$699m worth of shares (which is 33% of the company). 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 ManTech International Tell Us?
It doesn’t really mean much that no insider has traded ManTech International shares in the last quarter. It’s heartening that insiders own plenty of stock, but we’d like to see more insider buying, since the last year of ManTech International insider transactions don’t fill us with confidence. Of course, the future is what matters most. So if you are interested in ManTech International, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.