Don't Ignore The Fact That This Insider Just Sold Some Shares In Owens Corning (NYSE:OC)
We wouldn't blame Owens Corning (NYSE:OC) shareholders if they were a little worried about the fact that Michael Thaman, the Executive Chairman recently netted about US$3.1m selling shares at an average price of US$62.00. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.0%.
View our latest analysis for Owens Corning
Owens Corning Insider Transactions Over The Last Year
Notably, that recent sale by Michael Thaman is the biggest insider sale of Owens Corning shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$63.19. 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. It is worth noting that this sale was only 6.0% of Michael Thaman's holding.
Over the last year, we note insiders sold 151537 shares worth US$8.5m. Owens Corning insiders didn't buy any shares over the last year. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Owens Corning
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Owens Corning insiders own 1.6% of the company, currently worth about US$108m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Owens Corning Tell Us?
Insiders haven't bought Owens Corning stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Owens Corning makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
