Some Construction Partners, Inc. (NASDAQ:ROAD) shareholders may be a little concerned to see that the Senior Vice President, Robert Flowers, recently sold a substantial US$2.5m worth of stock at a price of US$101 per share. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.
Construction Partners Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Director, Mark Matteson, sold US$7.6m worth of shares at a price of US$64.30 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$101. 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. We note that the biggest single sale was 80% of Mark Matteson's holding.
In the last year Construction Partners insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Construction Partners 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. Construction Partners insiders own 10% of the company, currently worth about US$574m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Construction Partners Insider Transactions Indicate?
An insider hasn't bought Construction Partners stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Construction Partners 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 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. You'd be interested to know, that we found 3 warning signs for Construction Partners and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
