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In the last year, many Lowe's Companies, Inc. (NYSE:LOW) 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Lowe's Companies
The Last 12 Months Of Insider Transactions At Lowe's Companies
In the last twelve months, the biggest single sale by an insider was when the Executive VP, Ross McCanless, sold US$5.1m worth of shares at a price of US$213 per share. So what is clear is that an insider saw fit to sell at around the current price of US$199. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last year Lowe's Companies 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders At Lowe's Companies Have Sold Stock Recently
The last quarter saw substantial insider selling of Lowe's Companies shares. Specifically, insiders ditched US$8.3m 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.
Does Lowe's Companies Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Lowe's Companies insiders own 0.07% of the company, worth about US$87m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Lowe's Companies Tell Us?
Insiders sold Lowe's Companies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. Case in point: We've spotted 3 warning signs for Lowe's Companies you should be aware of, and 1 of them doesn't sit too well with us.