Independent Chairman of the Board Of Nine Energy Service Sold 54% Of Their Shares

Simply Wall St · 05/13 10:24

Anyone interested in Nine Energy Service, Inc. (NYSE:NINE) should probably be aware that the Independent Chairman of the Board, Ernie Danner, recently divested US$272k worth of shares in the company, at an average price of US$1.98 each. In particular, we note that the sale equated to a 54% reduction in their position size, which doesn't exactly instill confidence.

Check out our latest analysis for Nine Energy Service

The Last 12 Months Of Insider Transactions At Nine Energy Service

In the last twelve months, the biggest single sale by an insider was when the President, Ann Fox, sold US$470k worth of shares at a price of US$2.17 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.89). So it is hard to draw any strong conclusion from it.

In total, Nine Energy Service insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:NINE Insider Trading Volume May 13th 2024

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).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Nine Energy Service insiders own 21% of the company, worth about US$14m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Nine Energy Service Tell Us?

Insiders sold Nine Energy Service shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nine Energy Service. Be aware that Nine Energy Service is showing 3 warning signs in our investment analysis, and 1 of those is significant...

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 of direct interests only, but not derivative transactions or indirect interests.