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Over the past year, many The Sherwin-Williams Company (NYSE:SHW) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Sherwin-Williams Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President & GM of Global Supply Chain Division and Consumer Brands Group, Colin Davie, sold US$1.0m worth of shares at a price of US$360 per share. So we know that an insider sold shares at around the present share price of US$334. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Insiders in Sherwin-Williams didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Sherwin-Williams
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insiders At Sherwin-Williams Have Sold Stock Recently
The last quarter saw substantial insider selling of Sherwin-Williams shares. In total, President & GM of Global Supply Chain Division and Consumer Brands Group Colin Davie sold US$1.0m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sherwin-Williams insiders own 0.3% of the company, currently worth about US$254m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.