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Don't Ignore The Fact That This Insider Just Sold Some Shares In Aegion Corporation (NASDAQ:AEGN)

Simply Wall St
·3-min read

Some Aegion Corporation (NASDAQ:AEGN) shareholders may be a little concerned to see that the President, Charles Gordon, recently sold a substantial US$813k worth of stock at a price of US$16.26 per share. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

Check out our latest analysis for Aegion

Aegion Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Walter Galvin for US$813k worth of shares, at about US$16.26 per share. That means that an insider was happy to buy shares at above the current price of US$15.69. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 55.00k shares for US$893k. On the other hand they divested 50.00k shares, for US$813k. Overall, Aegion insiders were net buyers during the last year. 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!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Aegion Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Aegion insiders own about US$14m worth of shares. That equates to 2.9% of the company. 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 Aegion Insider Transactions Indicate?

Insider buying and selling have balanced each other out in the last three months, so we can't deduct anything useful from these recent trades. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Aegion and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Aegion and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.