This Insider Has Just Sold Shares In Builders FirstSource

We wouldn't blame Builders FirstSource, Inc. (NYSE:BLDR) shareholders if they were a little worried about the fact that David Rush, the Director recently netted about US$2.5m selling shares at an average price of US$141. That's a big disposal, and it decreased their holding size by 17%, which is notable but not too bad.

See our latest analysis for Builders FirstSource

Builders FirstSource Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Craig Steinke, sold US$4.6m worth of shares at a price of US$154 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$134). So it may not shed much light on insider confidence at current levels.

Insiders in Builders FirstSource didn't buy any shares in the last year. 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!

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Insider Ownership

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. Builders FirstSource insiders own about US$312m worth of shares (which is 2.1% of the company). 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 Builders FirstSource Tell Us?

An insider hasn't bought Builders FirstSource stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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 2 warning signs for Builders FirstSource 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.

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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.