Some RPM International Inc. (NYSE:RPM) shareholders may be a little concerned to see that the Independent Director, David Daberko, recently sold a whopping US$834k worth of stock at a price of US$69.51 per share. That's a big dump, and it decreased their holding size by 39%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At RPM International
Notably, that recent sale by David Daberko is the biggest insider sale of RPM International shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$70.19). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 39%of David Daberko's holding.
We note that in the last year insiders divested 13100 shares for a total of US$907k. RPM International 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of RPM International
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. RPM International insiders own about US$126m worth of shares (which is 1.4% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The RPM International Insider Transactions Indicate?
An insider hasn't bought RPM International 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. But since RPM International is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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.
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If you spot an error that warrants correction, please contact the editor at email@example.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.