Fortune Brands Innovations Insiders Sell US$1.4m Of Stock, Possibly Signalling Caution

The fact that multiple Fortune Brands Innovations, Inc. (NYSE:FBIN) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Fortune Brands Innovations

Fortune Brands Innovations Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP & Group President, Cheri Phyfer, for US$905k worth of shares, at about US$81.60 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$70.23. So it may not tell us anything about how insiders feel about the current share price.

Fortune Brands Innovations insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Fortune Brands Innovations Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Fortune Brands Innovations shares. In total, insiders sold US$1.1m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Fortune Brands Innovations

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 1.1% of Fortune Brands Innovations shares, worth about US$100m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Fortune Brands Innovations Tell Us?

Insiders sold Fortune Brands Innovations shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fortune Brands Innovations. In terms of investment risks, we've identified 2 warning signs with Fortune Brands Innovations and understanding them should be part of your investment process.

But note: Fortune Brands Innovations 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.