Viewing insider transactions for Beacon Roofing Supply, Inc.’s (NASDAQ:BECN ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.
Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Beacon Roofing Supply
Beacon Roofing Supply Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Chairman & Lead Independent Director, Stuart Randle, for US$746k worth of shares, at about US$72.43 per share. So we know that an insider sold shares at around the present share price of US$71.14. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
Over the last year we saw more insider selling of Beacon Roofing Supply shares, than buying. 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).
Beacon Roofing Supply Insiders Are Selling The Stock
We have seen a bit of insider selling at Beacon Roofing Supply, over the last three months. Executive VP Christine Reddy divested only US$39k worth of shares in that time. It’s not great to see insider selling, nor the lack of recent buyers. But the selling simply isn’t sufficiently substantial to be of much use as a signal.
Insider Ownership Of Beacon Roofing Supply
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. Beacon Roofing Supply insiders own about US$25m worth of shares. That equates to 0.6% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
Story continues
What Might The Insider Transactions At Beacon Roofing Supply Tell Us?
While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we’re not worried. Recent insider selling makes us a little nervous, in light of the broader picture of Beacon Roofing Supply insider transactions. But it’s good to see that insiders own shares in the company. 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. While conducting our analysis, we found that Beacon Roofing Supply has 1 warning sign and it would be unwise to ignore this.
But note: Beacon Roofing Supply may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
finance.yahoo.com
https://finance.yahoo.com/news/beacon-roofing-supply-insider-ups-191711957.html
