By selling $2.0 million worth of Masonite International Society (NYSE:DOOR) at an average sale price of US$119 over the past year, insiders appeared to have made the most of their holdings. The company’s market valuation shrank $161 million after the stock price fell 7.6% over the past week, but insiders were spared painful losses.
While we don’t believe shareholders should simply follow insider trading, we would consider it foolish to ignore insider trading altogether.
Check out our latest analysis for Masonite International
Masonite International insider trading over the past year
In the past twelve months, the largest single insider sale occurred when insider Robert Lewis sold US$999,000 worth of stock at US$116 per share. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The good news is that this big sell was well above the current price of US$86.16. So this may not tell us anything about what insiders think of the current stock price.
Over the past year, we have seen more insider selling of Masonite International stock than buying. The average selling price was around US$119. It’s certainly not great to see insiders selling shares of the company. But the sale was made at prices much higher than the current stock price (US$86.16), so that probably doesn’t tell us much about the value being offered today. The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!
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Many investors like to check how much a company is owned by insiders. High insider participation often makes company management more concerned with the interests of shareholders. It appears Masonite International insiders own 0.8% of the company, worth approximately $16 million. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.
So what do Masonite International insider trading indicate?
It doesn’t mean much that no insider has traded shares of Masonite International in the last quarter. Still, insider trading at Masonite International over the past 12 months is not very encouraging. The modest level of insider ownership is, at least, some comfort. In addition to knowing what insider trading is going on, it pays to identify the risks that Masonite International faces. For example, we have identified 2 warning signs for Masonite International (1 makes us a little uneasy) that you should be aware of.
Sure Masonite International may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.