Possible Bearish Signals With Quanta Services Insiders Disposing Stock

Quanta Services, Inc. -0.99%

Quanta Services, Inc.

PWR

243.26

-0.99%

The fact that multiple Quanta Services, Inc. (NYSE:PWR) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Quanta Services

The Last 12 Months Of Insider Transactions At Quanta Services

In the last twelve months, the biggest single sale by an insider was when the President, Earl Austin, sold US$28m worth of shares at a price of US$176 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$216. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 19% of Earl Austin's holding.

Quanta Services insiders didn't buy any shares over 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!

insider-trading-volume
NYSE:PWR Insider Trading Volume December 29th 2023

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Quanta Services

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Quanta Services insiders own about US$380m worth of shares (which is 1.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Quanta Services Insider Transactions Indicate?

The fact that there have been no Quanta Services insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Quanta Services, we can't say the same about the selling of shares. While we like knowing 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. Every company has risks, and we've spotted 1 warning sign for Quanta Services you should know about.

Of course Quanta Services may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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