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Potential Cornerstone Building Brands, Inc. (NYSE:CNR) shareholders may wish to note that the Independent Director, George Ball, recently bought US$225k worth of stock, paying US$3.75 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 21%.
Cornerstone Building Brands Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive VP & CFO Jeffrey Lee bought US$487k worth of shares at a price of US$4.87 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.45). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Over the last year, we can see that insiders have bought 938.58k shares worth US$4.1m. But they sold 13000 shares for US$112k. In the last twelve months there was more buying than selling by Cornerstone Building Brands insiders. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Cornerstone Building Brands Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Cornerstone Building Brands insiders own about US$10m worth of shares. That equates to 1.8% 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.
What Might The Insider Transactions At Cornerstone Building Brands Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Cornerstone Building Brands insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cornerstone Building Brands. In terms of investment risks, we've identified 2 warning signs with Cornerstone Building Brands and understanding these should be part of your investment process.
Of course Cornerstone Building Brands 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.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.