Modine Manufacturing Company's (NYSE:MOD) stock rose 19% last week, but insiders who sold US$4.3m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$49.87, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Modine Manufacturing Insider Transactions Over The Last Year

The Independent Director, Christopher Patterson, made the biggest insider sale in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$90.56 each. That means that even when the share price was below the current price of US$99.00, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 33% of Christopher Patterson's stake. Notably Christopher Patterson was also the biggest buyer, having purchased US$13k worth of shares.

All up, insiders sold more shares in Modine Manufacturing than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Modine Manufacturing Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Modine Manufacturing. Specifically, insiders ditched US$2.0m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Modine 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Modine Manufacturing insiders own 2.0% of the company, worth about US$96m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Modine Manufacturing Insiders?

Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Modine 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'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Modine Manufacturing. In terms of investment risks, we've identified 1 warning sign with Modine Manufacturing and understanding this should be part of your investment process.

But note: Modine Manufacturing 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 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.