U.S. Markets close in 2 hrs 15 mins

Have Nucor Corporation (NYSE:NUE) Insiders Been Selling Their Stock?

Simply Wall St

We'd be surprised if Nucor Corporation (NYSE:NUE) shareholders haven't noticed that the Executive Vice President of Engineered Bar Products, Raymond Napolitan, recently sold US$421k worth of stock at US$52.67 per share. The eyebrow raising move amounted to a reduction of 19% in their holding.

See our latest analysis for Nucor

The Last 12 Months Of Insider Transactions At Nucor

Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Flat-Rolled Products, Ladd Hall, for US$1.6m worth of shares, at about US$56.90 per share. That means that an insider was selling shares at around the current price of US$53.82. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

We note that in the last year insiders divested 80706 shares for a total of US$4.6m. In the last year Nucor insiders didn't buy any company stock. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:NUE Recent Insider Trading, October 27th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Nucor Boast High Insider Ownership?

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. Nucor insiders own about US$83m worth of shares. That equates to 0.5% of the company. 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 Nucor Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We'd think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Nucor.

But note: Nucor 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.

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.