Have Patrick Industries Insiders Been Selling Stock?

Some Patrick Industries, Inc. (NASDAQ:PATK) shareholders may be a little concerned to see that the President of RV, Jeffrey Rodino, recently sold a substantial US$2.6m worth of stock at a price of US$131 per share. That sale reduced their total holding by 13% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Patrick Industries

Patrick Industries Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Director, Todd Cleveland, for US$3.3m worth of shares, at about US$84.04 per share. That means that an insider was selling shares at slightly below the current price (US$135). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 15% of Todd Cleveland's holding.

Insiders in Patrick Industries didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Patrick Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Patrick Industries insiders own 4.4% of the company, currently worth about US$133m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Patrick Industries Tell Us?

Insiders haven't bought Patrick Industries stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 3 warning signs for Patrick Industries you should know about.

Of course Patrick Industries 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.