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Over the past year, many Martin Marietta Materials, Inc. (NYSE:MLM) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Martin Marietta Materials
The Last 12 Months Of Insider Transactions At Martin Marietta Materials
The Chairman, C. Nye, made the biggest insider sale in the last 12 months. That single transaction was for US$12m worth of shares at a price of US$604 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$539. So it is hard to draw any strong conclusion from it.
Insiders in Martin Marietta 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 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Martin Marietta Materials insiders own 0.7% of the company, worth about US$224m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Martin Marietta Materials Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Martin Marietta Materials insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Martin Marietta Materials. To that end, you should learn about the 3 warning signs we've spotted with Martin Marietta Materials (including 1 which can't be ignored).