Insiders at Modine Manufacturing Company (NYSE:MOD) sold US$182k worth of stock at an average price of US$14.57 a share over the past year, making the most of their investment. After the stock price dropped 9.9% last week, the company's market value declined by US$62m, but insiders were able to mitigate their losses.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Modine Manufacturing
The insider, Matthew McBurney, made the biggest insider sale in the last 12 months. That single transaction was for US$182k worth of shares at a price of US$14.57 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$10.80. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Matthew McBurney.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Modine Manufacturing Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Modine Manufacturing insiders own about US$20m worth of shares. That equates to 3.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Modine Manufacturing Tell Us?
It doesn't really mean much that no insider has traded Modine Manufacturing shares in the last quarter. Our analysis of Modine Manufacturing insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Modine Manufacturing.
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.
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.
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