Anyone interested in Simpson Manufacturing Co., Inc. (NYSE:SSD) should probably be aware that the Executive Vice President of Innovation - Simpson Strong-Tie Company Inc, Jeremy Gilstrap, recently divested US$446k worth of shares in the company, at an average price of US$178 each. That sale was 29% of their holding, so it does make us raise an eyebrow.
Simpson Manufacturing Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Michael Olosky, sold US$1.3m worth of shares at a price of US$187 per share. So what is clear is that an insider saw fit to sell at around the current price of US$182. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Simpson Manufacturing didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Simpson Manufacturing
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Does Simpson Manufacturing Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Simpson Manufacturing insiders own about US$28m worth of shares. That equates to 0.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Simpson Manufacturing Insider Transactions Indicate?
Insiders sold Simpson Manufacturing shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Simpson Manufacturing is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Simpson Manufacturing has 1 warning sign and it would be unwise to ignore this.
Of course Simpson Manufacturing may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.