BlueLinx Holdings Insider Lowered Holding By 17% During Last Year

Looking at BlueLinx Holdings Inc.'s (NYSE:BXC ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for BlueLinx Holdings

BlueLinx Holdings Insider Transactions Over The Last Year

The Director, Mitchell Lewis, made the biggest insider sale in the last 12 months. That single transaction was for US$938k worth of shares at a price of US$119 each. That means that even when the share price was below the current price of US$128, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 17% of Mitchell Lewis's stake. Mitchell Lewis was the only individual insider to sell shares in the last twelve months.

Mitchell Lewis ditched 13.31k shares over the year. The average price per share was US$117. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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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. BlueLinx Holdings insiders own about US$38m worth of shares. That equates to 3.7% 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.

So What Do The BlueLinx Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded BlueLinx Holdings shares in the last quarter. Still, the insider transactions at BlueLinx Holdings in the last 12 months are not very heartening. But it's good to see that insiders own shares in 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. Case in point: We've spotted 2 warning signs for BlueLinx Holdings you should be aware of.

But note: BlueLinx Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.