Last year, many IQVIA Holdings Inc. (NYSE:IQV) insiders have been selling a significant stake in the company, which may have piqued investor interest. Knowing if insiders are buying is usually more helpful in evaluating insider transactions, as insider selling can have various explanations. However, if multiple insiders are selling shares over a period of time, shareholders should pay attention, as this could potentially be a warning sign.

While we would never suggest that investors should base their decisions solely on the activities of a company’s management, we think it is perfectly logical to keep an eye on the activities of insiders.

Check out our latest analysis for IQVIA Holdings

Insider transactions by IQVIA Holdings in the last year

Insider Constantinos Panagos made the biggest insider sale of the last 12 months. This single transaction was for US$4.2 million worth of shares at a price of US$209 each. This means that an insider wanted to cash in on some shares even when the share price was below the current price of US$249. If an insider is selling below the current price, it suggests that they thought that lower price was fair. This makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we cannot be sure if it means insiders think the shares are fully valued, so it is only a weak sign. It is worth noting that this sale was 100% of Constantinos Panagos’s holding.

IQVIA Holdings insiders have not purchased any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year in the chart below. By clicking on the chart below you can see the exact details of each insider transaction!

I’ll like IQVIA Holdings better if I see some big insider buying. While we wait, check out this free List of undervalued stocks and small cap stocks with significant recent insider buying.

Does IQVIA Holdings have a high level of insider ownership?

I like to look at how many shares insiders own in a company to get an idea of ​​how well aligned they are with insiders. High insider ownership often means that company management is more mindful of shareholder interests. IQVIA Holdings insiders own about US$368m worth of shares (that’s 0.8% of the company). Most shareholders would be happy to see this kind of insider ownership, as it suggests that management’s incentives are well aligned with those of other shareholders.

So what does this data say about IQVIA Holdings insiders?

The fact that there have been no insider transactions at IQVIA Holdings recently certainly doesn’t bother us. It’s great to see high levels of insider ownership, but looking back over the last year, we don’t gain confidence from insider sales at IQVIA Holdings. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know what risks a given company is taking. At Simply Wall St, we’ve found 1 warning signal for IQVIA Holdings that deserve your attention before you buy stocks.

If you would rather try another company – one with potentially better financials – then don’t miss this free List of interesting companies with HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.