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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Applied Industrial Technologies, Inc. (NYSE:AIT).
What Is Insider Selling?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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 it is perfectly logical to keep tabs on what insiders are doing. 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'.
Applied Industrial Technologies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by L. Hiltz for US$964k worth of shares, at about US$77.15 per share. While the sale doesn't make us feel confident, we do note it was conducted at a price well above the current share price, which is US$58.66. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Applied Industrial Technologies shares, than buying. The average sell price was around US$72.94. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$58.66. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Applied Industrial Technologies better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Applied Industrial Technologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Applied Industrial Technologies insiders own 1.4% of the company, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Applied Industrial Technologies Tell Us?
The fact that there have been no Applied Industrial Technologies insider transactions recently certainly doesn't bother us. Still, the insider transactions at Applied Industrial Technologies in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Applied Industrial Technologies.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 firstname.lastname@example.org. 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.