Don't Ignore The Insider Selling In Ferguson Enterprises

We wouldn't blame Ferguson Enterprises Inc. (NYSE:FERG) shareholders if they were a little worried about the fact that Kevin Murphy, the CEO, President & Director recently netted about US$2.1m selling shares at an average price of US$234. However, that sale only accounted for 5.5% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Ferguson Enterprises

In fact, the recent sale by Kevin Murphy was the biggest sale of Ferguson Enterprises shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$241. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.5% of Kevin Murphy's stake.

Insiders in Ferguson Enterprises didn't buy any shares in 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!

See our latest analysis for Ferguson Enterprises

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).

Insider Ownership Of Ferguson Enterprises

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. Insiders own 0.1% of Ferguson Enterprises shares, worth about US$63m. 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 Ferguson Enterprises Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Ferguson Enterprises makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. 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 Ferguson Enterprises. You'd be interested to know, that we found 1 warning sign for Ferguson Enterprises and we suggest you have a look.

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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.