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Insiders were net sellers of Lowe's Companies, Inc.'s (NYSE:LOW ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Lowe's Companies
Over the last year, we can see that the biggest insider sale was by the Executive Vice President of Stores, Joseph McFarland, for US$1.1m worth of shares, at about US$271 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$231). So it may not shed much light on insider confidence at current levels. Joseph McFarland was the only individual insider to sell shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 Lowe's Companies
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Lowe's Companies
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. We usually like to see fairly high levels of insider ownership. Lowe's Companies insiders own about US$127m worth of shares (which is 0.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Lowe's Companies Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of Lowe's Companies, we can't say the same about the selling of shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Lowe's Companies is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...