U.S. Markets closed

Insider Buying: The Griffon Corporation (NYSE:GFF) Lead Independent Director Just Bought US$99k Worth Of Shares

Simply Wall St

Whilst it may not be a huge deal, we thought it was good to see that the Griffon Corporation (NYSE:GFF) Lead Independent Director, Kevin Sullivan, recently bought US$99k worth of stock, for US$19.82 per share. That purchase might not be huge but it did increase their holding by 16%.

See our latest analysis for Griffon

Griffon Insider Transactions Over The Last Year

Notably, that recent purchase by Kevin Sullivan is the biggest insider purchase of Griffon shares that we've seen in the last year. That means that even when the share price was higher than US$19.35 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Kevin Sullivan was the only individual insider to buy over the year.

You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:GFF Recent Insider Trading, February 8th 2020

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.

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. We usually like to see fairly high levels of insider ownership. Insiders own 8.8% of Griffon shares, worth about US$75m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Griffon Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Griffon we think they are probably pretty confident of a bright future. 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.

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.

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.

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. Thank you for reading.