After a 4.5% dip, insiders are undoubtedly glad they sold Acuity Brands, Inc. (NYSE:AYI)

By
Simply Wall St
Published
February 23, 2022
NYSE:AYI
Source: Shutterstock

Over the past year, insiders sold US$191k worth of Acuity Brands, Inc. (NYSE:AYI) stock at an average price of US$190 per share allowing them to get the most out of their money. The company’s market cap plunged by US$287m after price dropped by 4.5% last week but insiders were able to limit their loss to an extent.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Acuity Brands

The Last 12 Months Of Insider Transactions At Acuity Brands

In the last twelve months, the biggest single sale by an insider was when the insider, Peter Browning, sold US$191k worth of shares at a price of US$190 per share. So we know that an insider sold shares at around the present share price of US$177. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Peter Browning was the only individual insider to sell over the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:AYI Insider Trading Volume February 23rd 2022

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).

Insider Ownership of Acuity Brands

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. Insiders own 0.5% of Acuity Brands shares, worth about US$31m. 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 Acuity Brands Tell Us?

It doesn't really mean much that no insider has traded Acuity Brands shares in the last quarter. Still, the insider transactions at Acuity Brands in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Acuity Brands 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, but not derivative transactions.

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