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The Middleby Corporation (NASDAQ:MIDD) shareholders (or potential shareholders) will be happy to see that the Independent Director, Edward Garden, recently bought a whopping US$66m worth of stock, at a price of US$145. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 17%.
We've discovered 1 warning sign about Middleby. View them for free.
Middleby Insider Transactions Over The Last Year
Notably, that recent purchase by Edward Garden is the biggest insider purchase of Middleby shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$150). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 454.40k shares for US$66m. But insiders sold 3.60k shares worth US$486k. In the last twelve months there was more buying than selling by Middleby insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Middleby is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Middleby Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Middleby insiders own about US$496m worth of shares (which is 6.2% of the company). 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 Do The Middleby Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Middleby insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Middleby. You'd be interested to know, that we found 1 warning sign for Middleby and we suggest you have a look.