With the price of Shenandoah Telecommunications Company (NASDAQ:SHEN) down 7.1% this week, insiders may find some comfort after selling $4.2 million worth of stock earlier this year.

Insiders appear to have made the most of their holdings by selling $4.2 million worth of Shenandoah Telecommunications Company (NASDAQ:SHEN) at an average sale price of $50.97 over the past year. The company’s market valuation shrank by $97 million after the stock price fell 7.1% 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.

Shenandoah Telecommunications insider trades over the past year

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. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. It is reassuring that this sale was made at a price well above the current share price of US$25.39. It is therefore difficult to draw a firm conclusion.

Shenandoah Telecommunications insiders haven’t bought any shares in the past year. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!

NasdaqGS: SHEN Insider Trading Volume as of December 1, 2021

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

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. Shenandoah Telecommunications insiders own approximately $52 million in stock. This equates to 4.1% of the business. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what do Shenandoah Telecommunications insider trading indicate?

The fact that there have been no Shenandoah Telecommunications insider trades recently certainly doesn’t bother us. Still, insider trading at Shenandoah Telecommunications over the past 12 months isn’t very encouraging. The modest level of insider ownership is, at least, some comfort. In addition to knowing the insider trading taking place, it pays to identify the risks that Shenandoah Telecommunications faces. For example, we have identified 2 warning signs for Shenandoah Telecommunications (1 should not be ignored) which you should be aware of.

Sure Shenandoah Telecommunications may not be the best stock to buy. So you might want to see this free set of high quality companies.

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.

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Sean B. Jackson