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In the last year, many Vulcan Materials Company (NYSE:VMC) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Vulcan Materials
The Last 12 Months Of Insider Transactions At Vulcan Materials
Over the last year, we can see that the biggest insider sale was by the CEO & Chairman, James Hill, for US$8.7m worth of shares, at about US$246 per share. That means that even when the share price was below the current price of US$288, 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. 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. This single sale was just 36% of James Hill's stake.
Insiders in Vulcan Materials didn't buy any shares in 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!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insiders At Vulcan Materials Have Sold Stock Recently
The last three months saw significant insider selling at Vulcan Materials. Specifically, insiders ditched US$657k 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.
Insider Ownership Of Vulcan Materials
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Vulcan Materials insiders own about US$60m worth of shares. That equates to 0.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.