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Don't Ignore The Fact That This Insider Just Sold Some Shares In Carlisle Companies Incorporated (NYSE:CSL)

Simply Wall St

Some Carlisle Companies Incorporated (NYSE:CSL) shareholders may be a little concerned to see that the President of Carlisle Interconnect Technologies, John Berlin, recently sold a whopping US$1.1m worth of stock at a price of US$154 per share. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Carlisle Companies

The Last 12 Months Of Insider Transactions At Carlisle Companies

In the last twelve months, the biggest single sale by an insider was when the Non Executive Chairman, David Roberts, sold US$3.9m worth of shares at a price of US$138 per share. That means that an insider was selling shares at slightly below the current price (US$155). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 12% of David Roberts's holding.

Over the last year we saw more insider selling of Carlisle Companies shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:CSL Recent Insider Trading, October 27th 2019

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. It appears that Carlisle Companies insiders own 1.1% of the company, worth about US$93m. 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 Does This Data Suggest About Carlisle Companies Insiders?

Unfortunately, there has been more insider selling of Carlisle Companies stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Carlisle Companies is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Carlisle Companies 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 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.