Don't Ignore The Fact That This Insider Just Sold Some Shares In Cornerstone Building Brands, Inc. (NYSE:CNR)

We'd be surprised if Cornerstone Building Brands, Inc. (NYSE:CNR) shareholders haven't noticed that the Executive VP & Chief Human Resources Officer, Katy Theroux, recently sold US$226k worth of stock at US$12.23 per share. On the bright side, that sale was only 5.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Cornerstone Building Brands

The Last 12 Months Of Insider Transactions At Cornerstone Building Brands

Over the last year, we can see that the biggest insider purchase was by Executive VP Jeffrey Lee for US$487k worth of shares, at about US$4.87 per share. Even though the purchase was made at a significantly lower price than the recent price (US$13.17), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 510.08k shares for US$2.1m. But they sold 86.54k shares for US$705k. Overall, Cornerstone Building Brands insiders were net buyers during the last year. Their average price was about US$4.19. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Cornerstone Building Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.7% of Cornerstone Building Brands shares, worth about US$45m. 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 Does This Data Suggest About Cornerstone Building Brands Insiders?

Insiders sold Cornerstone Building Brands shares recently, but they didn't buy any. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're happy enough to look past some selling. 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. You'd be interested to know, that we found 2 warning signs for Cornerstone Building Brands and we suggest you have a look.

Of course Cornerstone Building 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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This article by Simply Wall St is general in nature. 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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