We wouldn't blame Valmont Industries, Inc. (NYSE:VMI) shareholders if they were a little worried about the fact that Mogens Bay, the Non-Executive Chairman recently netted about US$5.4m selling shares at an average price of US$316. That's a big disposal, and it decreased their holding size by 10%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Valmont Industries
In fact, the recent sale by Non-Executive Chairman Mogens Bay was not their only sale of Valmont Industries shares this year. They previously made an even bigger sale of -US$5.4m worth of shares at a price of US$303 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$312. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 9.5% of Mogens Bay's holding.
Valmont Industries insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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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. We usually like to see fairly high levels of insider ownership. Valmont Industries insiders own 1.9% of the company, currently worth about US$117m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Valmont Industries Insiders?
Insiders haven't bought Valmont Industries stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Valmont Industries is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Valmont Industries has 2 warning signs and it would be unwise to ignore them.
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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.
