Some McGrath RentCorp (NASDAQ:MGRC) shareholders may be a little concerned to see that the Director, Joseph Hanna, recently sold a substantial US$850k worth of stock at a price of US$121 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.4%.

The Last 12 Months Of Insider Transactions At McGrath RentCorp

Notably, that recent sale by Director Joseph Hanna was not the only time they sold McGrath RentCorp shares this year. They previously made an even bigger sale of -US$1.8m worth of shares at a price of US$128 per share. So what is clear is that an insider saw fit to sell at around the current price of US$118. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in McGrath RentCorp didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. McGrath RentCorp insiders own about US$23m worth of shares. That equates to 0.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The McGrath RentCorp Insider Transactions Indicate?

Insiders sold McGrath RentCorp shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - McGrath RentCorp has 3 warning signs we think you should be aware of.

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.

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.