Don't Ignore The Insider Selling In Modine Manufacturing

Explore Modine Manufacturing's Fair Values from the Community and select yours

We wouldn't blame Modine Manufacturing Company (NYSE:MOD) shareholders if they were a little worried about the fact that Marsha Williams, the Independent Chairman & Lead Director recently netted about US$3.5m selling shares at an average price of US$135. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Modine Manufacturing Insider Transactions Over The Last Year

The President of Climate Solutions, Eric McGinnis, made the biggest insider sale in the last 12 months. That single transaction was for US$5.6m worth of shares at a price of US$128 each. That means that even when the share price was below the current price of US$140, an insider wanted to cash in some shares. 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. It is worth noting that this sale was 64% of Eric McGinnis's holding.

Over the last year we saw more insider selling of Modine Manufacturing shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Modine Manufacturing

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Modine Manufacturing

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. Modine Manufacturing insiders own 1.7% of the company, currently worth about US$128m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Modine Manufacturing Tell Us?

An insider sold Modine Manufacturing shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Modine Manufacturing is growing earnings. 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 these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Modine Manufacturing and we suggest you have a look.

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 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.