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Don't Ignore The Fact That This Insider Just Sold Some Shares In Patrick Industries, Inc. (NASDAQ:PATK)

Simply Wall St

We'd be surprised if Patrick Industries, Inc. (NASDAQ:PATK) shareholders haven't noticed that the Executive VP of Human Resources & Chief Human Resources Officer, Courtney Blosser, recently sold US$384k worth of stock at US$51.26 per share. The eyebrow raising move amounted to a reduction of 14% in their holding.

See our latest analysis for Patrick Industries

The Last 12 Months Of Insider Transactions At Patrick Industries

Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Todd Cleveland, for US$1.0m worth of shares, at about US$51.51 per share. That means that an insider was selling shares at around the current price of US$51.16. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Notably Todd Cleveland was also the biggest buyer, having purchased US$1.7m worth of shares.

In the last twelve months insiders purchased 52156 shares for US$1.7m. On the other hand they divested 41493 shares, for US$2.1m. Over the last year we saw more insider selling of Patrick Industries shares, than buying. You can see the insider transactions (by 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!

NasdaqGS:PATK Recent Insider Trading, November 11th 2019

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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. A high insider ownership often makes company leadership more mindful of shareholder interests. Patrick Industries insiders own about US$73m worth of shares. That equates to 6.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Patrick Industries Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Patrick Industries stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Patrick Industries.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, 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 editorial-team@simplywallst.com. 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.