 Shares of Goosehead Insurance Inc NASDAQ:GSHD rose by 0.4 from the previous closing price. A Form 4 filing filed with the SEC on Tuesday, June 30 showed that President and Colby Michael C. sold 9,019 shares at an average price of 75.20. The transaction moved the executives stake in Goosehead Insurance Inc. to 63,631 shares.The Importance of Insider Transactions While transactions from an insider shouldnt be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.When an insider buys stock after an important sell off, that can indicate the insiders faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to take some profit and lock in a gain.Transaction Codes To Focus On Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a concious decision for the companys stock moving forward.Transaction codes besides P or S arent relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.See more from Benzinga Stocks That Hit 52-Week Highs On Tuesday Stocks That Hit 52-Week Highs On Friday Stocks That Hit 52-Week Highs On WednesdayC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 