Shenandoah Telecommunications Company (NASDAQ:SHEN) insiders who sold $4.2 million worth of stock earlier this year are likely glad they did as the market capitalization tumbles to $1.1 billion.

Insiders to Shenandoah Telecommunications Company (NASDAQ:SHEN) sold $4.2 million worth of stock at an average price of $50.97 per share over the past year, making the most of their investment. The company’s market valuation shrank $63 million after the stock price fell 5.2% over the past week, but insiders were spared painful losses.

While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.

Check out our latest analysis for Shenandoah Telecommunications

The Last 12 Months of Insider Trading at Shenandoah Telecommunications

Insider William Pirtle had the biggest insider sell in the past 12 months. This single transaction was for $1.5 million worth of shares at a price of $51.12 each. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The good news is that this big sell was well above the current price of US$22.81. It is therefore difficult to draw a firm conclusion.

Shenandoah Telecommunications insiders did not buy any shares last year. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

NasdaqGS: SHEN Insider Trading Volume April 20, 2022

For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Does Shenandoah Telecommunications boast high insider ownership?

Another way to test alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. Insiders hold 4.1% of Shenandoah Telecommunications stock, worth approximately $47 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

So what do Shenandoah Telecommunications insider trading indicate?

It doesn’t mean much that no insider traded shares of Shenandoah Telecommunications in the last quarter. We are not very encouraged by the transactions of Shenandoah Telecommunications insiders. The modest level of insider ownership is, at least, some comfort. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example – Shenandoah Telecommunications has 2 warning signs we think you should know.

But note: Shenandoah Telecommunications may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Sean B. Jackson