Bullish MillerKnoll Insiders Loaded Up On US$1.52m Of Stock
Multiple insiders secured a larger position in MillerKnoll, Inc. (NASDAQ:MLKN) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for MillerKnoll
MillerKnoll Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Michael Volkema bought US$1.0m worth of shares at a price of US$16.61 per share. We do like to see buying, but this purchase was made at well below the current price of US$30.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 91.34k shares for US$1.5m. But insiders sold 9.77k shares worth US$276k. In the last twelve months there was more buying than selling by MillerKnoll insiders. 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!
MillerKnoll is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
MillerKnoll Insiders Are Selling The Stock
The last quarter saw substantial insider selling of MillerKnoll shares. Specifically, Chief Financial Officer Jeffrey Stutz ditched US$276k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.1% of MillerKnoll shares, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The MillerKnoll Insider Transactions Indicate?
An insider sold MillerKnoll shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. It's good to see insiders are shareholders. So we're happy enough to look past some selling. 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 4 warning signs for MillerKnoll you should be aware of, and 1 of these shouldn't be ignored.
But note: MillerKnoll 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.
