This Insider Has Just Sold Shares In Argan

We wouldn't blame Argan, Inc. (NYSE:AGX) shareholders if they were a little worried about the fact that Rainer Bosselmann, the Director recently netted about US$3.2m selling shares at an average price of US$129. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Argan

In fact, the recent sale by Director Rainer Bosselmann was not their only sale of Argan shares this year. They previously made an even bigger sale of -US$3.8m worth of shares at a price of US$77.11 per share. That means that an insider was selling shares at slightly below the current price (US$120). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 17% of Rainer Bosselmann's stake.

In the last year Argan insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Argan

I will like Argan better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Argan

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Argan insiders own 4.5% of the company, worth about US$79m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Argan Insider Transactions Indicate?

Insiders sold Argan shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Argan makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Argan you should be aware of.

But note: Argan 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.

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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.