We wouldn’t blame The Home Depot, Inc. (NYSE:HD) shareholders if they were a little worried about the fact that Carol Tomé, the CFO & Executive VP of Corporate Services recently netted about US$12m selling shares at an average price of US$219. That sale reduced their total holding by 11.2% which is hardly insignificant, but far from the worst we’ve seen.
The Last 12 Months Of Insider Transactions At Home Depot
Notably, that recent sale by CFO & Executive VP of Corporate Services Carol Tomé was not the only time they sold Home Depot shares this year. Earlier in the year, they fetched US$219 per share in a -US$12.1m sale. So what is clear is that an insider saw fit to sell at around the current price of US$217. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 14750 shares worth US$2.6m. But insiders sold 102k shares worth US$21m. Over the last year we saw more insider selling of Home Depot shares, than buying. 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!
Insider Ownership of Home Depot
Many investors like to check how much of a company is owned by 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. It’s great to see that Home Depot insiders own 0.1% of the company, worth about US$241m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Home Depot Insiders?
Insiders sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. On the plus side, Home Depot makes money, and is growing profits. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Home Depot.
But note: Home Depot 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, but not derivative transactions.
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