Don't Ignore The Fact That This Insider Just Sold Some Shares In Patrick Industries, Inc. (NASDAQ:PATK)

By
Simply Wall St
Published
March 14, 2021
NasdaqGS:PATK

We wouldn't blame Patrick Industries, Inc. (NASDAQ:PATK) shareholders if they were a little worried about the fact that M. Welch, the Lead Independent Director recently netted about US$908k selling shares at an average price of US$90.80. However, that sale only accounted for 8.7% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Patrick Industries

Patrick Industries Insider Transactions Over The Last Year

Notably, that recent sale by M. Welch is the biggest insider sale of Patrick Industries shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$89.72. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

Insiders in Patrick Industries didn't buy any shares in the last year. You can see the insider transactions (by companies and 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-trading-volume
NasdaqGS:PATK Insider Trading Volume March 14th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Patrick Industries

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 Patrick Industries insiders own 5.2% of the company, worth about US$111m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Patrick Industries Tell Us?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Patrick Industries makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Patrick Industries. At Simply Wall St, we've found that Patrick Industries has 3 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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. 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.
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