Insiders were net buyers of Beacon Roofing Supply, Inc (NASDAQ:BECN) stocks over the past year. That means insiders bought more shares than they sold.
While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would think it foolish to ignore insider transactions entirely.
Check out our latest analysis for Beacon Roofing Supply
The last 12 months of insider transactions at Beacon Roofing Supply
Over the past year, we can see that insider Martin Harrell’s largest insider buy was $500,000 in shares, at around $55.50 per share. So it’s clear that an insider wanted to buy, around the current price of $60.08. Of course, they may have changed their minds. But that suggests they’re optimistic. We always like to see insider buying, but it’s worth noting whether those purchases were made well below today’s share price, as the discount to value may have narrowed as the price has risen. The good news for Beacon Roofing Supply shareholders is that an insider bought the stock at almost the current price. Martin Harrell was the only single insider to buy in the last year.
Martin Harrell purchased a total of 12,86,000 shares during the year at an average price of $58.34. The chart below shows insider transactions (of companies and individuals) over the past year. If you want to know exactly who sold how much and when, just click on the graphic below!
Insider Trading Volume
Beacon Roofing Supply isn’t the only stock insiders are buying. For those who like to find win investments The free List of growing companies with recent insider purchases might be just the ticket.
Does Beacon Roofing Supply have high insider ownership?
Many investors like to check how much of a company is owned by insiders. Typically, the higher the insider ownership, the more likely it is that insiders will be incentivized to build the company over the long term. It appears that Beacon Roofing Supply insiders own 0.5% of the company, valued at about $21 million. While that’s a strong but not stellar level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
The story goes on
What could the insider transactions at Beacon Roofing Supply tell us?
It’s good to see the recent insider purchase. We also gain confidence from the longer-term picture of insider transactions. Insiders likely see value in Beacon Roofing Supply stock given these transactions (along with the company’s notable insider ownership). So while it’s helpful to know what insiders are doing in relation to the purchase or sale, it’s also helpful to know the risks a particular company faces. To help with that, we discovered 1 warning sign that you should take a look to get a better idea of Beacon Roofing Supply.
Naturally Beacon Roofing Supply might not be the best stock to buy. You might want to see this free Collection of high quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulator. We currently account for open market transactions and private dispositions, but not derivatives transactions.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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