We’d be surprised if Stanley Black & Decker, Inc. (NYSE:SWK) shareholders haven’t noticed that an insider, Joseph Voelker, recently sold US$221k worth of stock at US$162 per share. That sale was 27% of their holding, so it does make us raise an eyebrow.
Stanley Black & Decker Insider Transactions Over The Last Year
The Executive VP and President of Tools & Storage, Jeffery Ansell, made the biggest insider sale in the last 12 months. That single transaction was for US$2.4m worth of shares at a price of US$150 each. That means that an insider was selling shares at slightly below the current price (US$163). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. This single sale was just 36% of Jeffery Ansell’s stake.
Stanley Black & Decker insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Stanley Black & Decker better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Stanley Black & Decker insiders own about US$47m worth of shares. That equates to 0.2% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Stanley Black & Decker Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. On the plus side, Stanley Black & Decker makes money, and is growing profits. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Stanley Black & Decker.
Of course Stanley Black & Decker may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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