Have Reece Insiders Been Selling Stock?

We wouldn't blame Reece Limited (ASX:REH) shareholders if they were a little worried about the fact that Leslie Wilson, the Executive Director recently netted about AU$47m selling shares at an average price of AU$23.74. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.8%.

View our latest analysis for Reece

Reece Insider Transactions Over The Last Year

Notably, that recent sale by Leslie Wilson is the biggest insider sale of Reece shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$22.86. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).

In the last twelve months insiders purchased 1.46k shares for AU$38k. On the other hand they divested 2.00m shares, for AU$47m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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: Most of them are flying under the radar).

Insider Ownership Of Reece

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. Reece insiders own about AU$1.7b worth of shares (which is 12% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Reece Insider Transactions Indicate?

An insider sold Reece shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Reece makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for Reece you should know about.

Of course Reece 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 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.