Potential Owens Corning (NYSE:OC) shareholders may wish to note that the Interim CFO & VP, Prithvi Gandhi, recently bought US$235k worth of stock, paying US$46.90 for each share. That’s a very solid buy in our book, and increased their holding by a noteworthy 12%.
Owens Corning Insider Transactions Over The Last Year
The Executive Chairman, Michael Thaman, made the biggest insider sale in the last 12 months. That single transaction was for US$3.1m worth of shares at a price of US$62.00 each. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$43.87. So it may not tell us anything about how insiders feel about the current share price.
In total, Owens Corning insiders sold more than they bought over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Owens Corning better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Owens Corning
For a common shareholder, it is worth checking how many shares are held by company 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. Insiders own 1.5% of Owens Corning shares, worth about US$73m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Owens Corning Insider Transactions Indicate?
We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. Recent sales exacerbate our caution arising from analysis of Owens Corning insider transactions. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. For example – Owens Corning has 3 warning signs we think you should be aware of.
Of course Owens Corning 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.
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