Investors may wish to note that the Executive VP & Chief Administrative Officer of NewMarket Corporation, Bruce Hazelgrove, recently netted US$82k from selling stock, receiving an average price of US$479. However we note that the sale only shrunk their holding by 0.6%.
NewMarket Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman, Thomas Gottwald, for US$4.8m worth of shares, at about US$441 per share. That means that even when the share price was below the current price of US$481, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.0% of Thomas Gottwald's holding.
Over the last year, we note insiders sold 11671 shares worth US$5.1m. Insiders in NewMarket didn't buy any shares in the last 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does NewMarket Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. NewMarket insiders own about US$1.8b worth of shares (which is 34% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At NewMarket Tell Us?
An insider hasn't bought NewMarket stock in the last three months, but there was some selling. And even if we look to the last year, we didn't see any purchases. But since NewMarket is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for NewMarket.
But note: NewMarket may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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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.