Some The AZEK Company Inc. (NYSE:AZEK) shareholders may be a little concerned to see that the CEO, President & Director, Jesse Singh, recently sold a substantial US$869k worth of stock at a price of US$34.77 per share. However, that sale only accounted for 1.4% of their holding, so arguably it doesn't say much about their conviction.
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The Last 12 Months Of Insider Transactions At AZEK
Notably, that recent sale by CEO, President & Director Jesse Singh was not the only time they sold AZEK shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$33.32 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$38.15. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was just 3.2% of Jesse Singh's stake.
In the last year AZEK insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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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. We usually like to see fairly high levels of insider ownership. It's great to see that AZEK insiders own 2.0% of the company, worth about US$110m. 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 AZEK Insiders?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for AZEK you should be aware of.
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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.