Some Roper Technologies, Inc. (NASDAQ:ROP) shareholders may be a little concerned to see that the Independent Director, Richard Wallman, recently sold a substantial US$2.3m worth of stock at a price of US$361 per share. That sale reduced their total holding by 46% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Roper Technologies

Notably, that recent sale by Richard Wallman is the biggest insider sale of Roper Technologies shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$391. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 46% of Richard Wallman's stake.

Over the last year, we can see that insiders have bought 4.60k shares worth US$1.9m. On the other hand they divested 6.83k shares, for US$2.5m. In total, Roper Technologies 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Roper Technologies better if I see some big insider buys.

Does Roper Technologies Boast High 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. It's great to see that Roper Technologies insiders own 0.4% of the company, worth about US$142m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Roper Technologies Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Roper Technologies is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Roper Technologies.

But note: Roper Technologies 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.

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.