We wouldn't blame Mohawk Industries, Inc. (NYSE:MHK) shareholders if they were a little worried about the fact that Jeffrey Lorberbaum, the Chairman & CEO recently netted about US$2.2m selling shares at an average price of US$86.34. However, that sale only accounted for 0.3% of their holding, so arguably it doesn't say much about their conviction.
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Mohawk Industries Insider Transactions Over The Last Year
Notably, that recent sale by Jeffrey Lorberbaum is the biggest insider sale of Mohawk Industries shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$84.30. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Mohawk Industries insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Does Mohawk Industries 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Mohawk Industries insiders own 16% of the company, worth about US$880m. 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 Mohawk Industries Insiders?
An insider sold Mohawk Industries shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 Mohawk Industries you should know about.
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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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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.