REX American Resources Insiders Benefitted From Selling Stock At US$35.03
REX American Resources Corporation REX | 45.75 45.75 | +1.46% 0.00% Pre |
Despite the fact that REX American Resources Corporation (NYSE:REX) stock rose 30% last week, insiders who sold US$277k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$35.03, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for REX American Resources
The Last 12 Months Of Insider Transactions At REX American Resources
In the last twelve months, the biggest single sale by an insider was when the VP of Finance, Douglas Bruggeman, sold US$123k worth of shares at a price of US$35.00 per share. That means that an insider was selling shares at slightly below the current price (US$58.71). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.1% of Douglas Bruggeman's holding. The only individual insider seller over the last year was Douglas Bruggeman.
Douglas Bruggeman ditched 7.91k shares over the year. The average price per share was US$35.03. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does REX American Resources Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 12% of REX American Resources shares, worth about US$95m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The REX American Resources Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by REX American Resources insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of REX American Resources.
But note: REX American Resources may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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 of direct interests only, but not derivative transactions or indirect interests.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.