We'd be surprised if Meritage Homes Corporation (NYSE:MTH) shareholders haven't noticed that the Executive VP, Phillippe Lord, recently sold US$407k worth of stock at US$163 per share. However, the silver lining is that the sale only reduced their total holding by 2.4%, so we're hesitant to read anything much into it, on its own.
Meritage Homes Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Michael Odell, sold US$1.3m worth of shares at a price of US$128 per share. That means that an insider was selling shares at slightly below the current price (US$154). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 29% of Michael Odell's stake.
Meritage Homes 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Meritage Homes
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Meritage Homes insiders own 2.1% of the company, worth about US$121m. 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 Does This Data Suggest About Meritage Homes Insiders?
An insider hasn't bought Meritage Homes stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. Case in point: We've spotted 2 warning signs for Meritage Homes you should be aware of.
Of course Meritage Homes may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.