Some Energy Services of America Corporation (NASDAQ:ESOA) shareholders may be a little concerned to see that the Chairman of the Board, Marshall Reynolds, recently sold a substantial US$1.7m worth of stock at a price of US$16.81 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 7.0%.

The Last 12 Months Of Insider Transactions At Energy Services of America

Notably, that recent sale by Marshall Reynolds is the biggest insider sale of Energy Services of America shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$14.93. So it may not tell us anything about how insiders feel about the current share price.

All up, insiders sold more shares in Energy Services of America than they bought, over the last year. The average sell price was around US$13.33. It's not particularly great to see insiders were selling shares at below recent prices. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

I will like Energy Services of America better if I see some big insider buys.

Insider Ownership Of Energy Services of America

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Energy Services of America insiders own about US$68m worth of shares. That equates to 22% of the company. 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 Energy Services of America Insider Transactions Indicate?

The stark truth for Energy Services of America is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. 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. While conducting our analysis, we found that Energy Services of America has 2 warning signs and it would be unwise to ignore these.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.