Did Select Interior Concepts, Inc. (NASDAQ:SIC) Insiders Buy Up More Shares?
We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Select Interior Concepts, Inc. (NASDAQ:SIC).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
View our latest analysis for Select Interior Concepts
Select Interior Concepts Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Nadeem Moiz bought US$102k worth of shares at a price of US$10.18 per share. That implies that an insider found the current price of US$11.00 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Select Interior Concepts share holders is that insiders were buying at near the current price.
In the last twelve months insiders paid US$251k for 23383 shares purchased. While Select Interior Concepts insiders bought shares last year, they didn't sell. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Select Interior Concepts is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Select Interior Concepts insiders own 2.3% of the company, worth about US$6.4m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Select Interior Concepts Tell Us?
The fact that there have been no Select Interior Concepts insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Select Interior Concepts insiders are doubting the company. Of course, the future is what matters most. So if you are interested in Select Interior Concepts, you should check out this free report on analyst forecasts for the company.
But note: Select Interior Concepts 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.
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