We wouldn't blame Installed Building Products, Inc. (NYSE:IBP) shareholders if they were a little worried about the fact that Michael Miller, the CFO, Executive VP of Finance & Director recently netted about US$925k selling shares at an average price of US$162. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.0%.
See our latest analysis for Installed Building Products
Installed Building Products Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman, Jeffrey Edwards, sold US$14m worth of shares at a price of US$117 per share. That means that even when the share price was below the current price of US$184, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 2.6% of Jeffrey Edwards's holding.
In the last year Installed Building Products insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Installed Building Products Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Installed Building Products insiders own about US$801m worth of shares (which is 17% 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 Installed Building Products Insider Transactions Indicate?
Insiders sold Installed Building Products shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Installed Building Products is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example - Installed Building Products has 2 warning signs we think you should be aware of.
But note: Installed Building Products 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 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.