Some Installed Building Products, Inc. (NYSE:IBP) shareholders may be a little concerned to see that the Chief Operating Officer, Jay Elliott, recently sold a whopping US$1.4m worth of stock at a price of US$70.83 per share. That's a big dump, and it decreased their holding size by 46%, which is notable but not too bad.
Installed Building Products Insider Transactions Over The Last Year
In fact, the recent sale by Jay Elliott was the biggest sale of Installed Building Products shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$69.47. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
We note that in the last year insiders divested 50648 shares for a total of US$3.1m. In the last year Installed Building Products insiders didn't buy any company stock. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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 Installed Building Products insiders own 7.8% of the company, worth about US$162m. 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 haven't bought Installed Building Products stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. On the plus side, Installed Building Products makes money, and is growing profits. 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. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Installed Building Products.
Of course Installed Building Products 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.