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Insiders are probably glad they sold their shares in Grand Canyon Education, Inc. (NASDAQ: LOPE) after 5.3% drop

Insiders seem to have made the most of their holdings by selling US$164k worth of Grand Canyon Education, Inc. (NASDAQ:LOPE) stock at an average selling price of US$91.17 during the past year. The company’s market valuation decreased by US$142m after the stock price dropped 5.3% over the past week, but insiders were spared from painful losses.

Although we don’t think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

However if you’d rather see where the opportunities and risks are within LOPE’s industryyou can check out our analysis on the US Consumer Services industry.

The Last 12 Months Of Insider Transactions At Grand Canyon Education

Over the last year, we can see that the biggest insider sale was by the Senior VP, Lori Browning, for US$90k worth of shares, at about US$90.37 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$79.96). So it may not shed much light on insider confidence at current levels.

Grand Canyon Education insiders did not buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqGS:LOPE Insider Trading Volume September 23rd 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Grand Canyon Education Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Grand Canyon Education insiders own 2.1% of the company, worth about US$52m. 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 Does This Data Suggest About Grand Canyon Education Insiders?

The fact that there have been no Grand Canyon Education insider transactions recently certainly doesn’t bother us. Still, the insider transactions at Grand Canyon Education in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. Every company has risks, and we’ve spotted them 1 warning sign for Grand Canyon Education you should know about.

But note: Grand Canyon Education 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, but not derivative transactions.

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 into account 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.

Valuation is complex, but we’re helping to make it simple.

Find out whether Grand Canyon Education is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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