Some The Andersons, Inc. (NASDAQ:ANDE) shareholders may be a little concerned to see that the President, Patrick Bowe, recently sold a substantial US$531k worth of stock at a price of US$60.35 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.9%.
The Last 12 Months Of Insider Transactions At Andersons
Notably, that recent sale by President Patrick Bowe was not the only time they sold Andersons shares this year. They previously made an even bigger sale of -US$2.8m worth of shares at a price of US$50.47 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$56.60. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 25% of Patrick Bowe's stake.
Andersons 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Andersons Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Andersons insiders own about US$100m worth of shares (which is 5.2% 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 Andersons Insider Transactions Indicate?
Insiders sold Andersons shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Andersons.
Of course Andersons 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.