Have Griffon Insiders Been Selling Stock?

Some Griffon Corporation (NYSE:GFF) shareholders may be a little concerned to see that the Chairman of the Board & CEO, Ronald Kramer, recently sold a substantial US$23m worth of stock at a price of US$74.20 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Griffon

The Last 12 Months Of Insider Transactions At Griffon

In fact, the recent sale by Ronald Kramer was the biggest sale of Griffon shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$77.39. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Griffon insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Griffon Boast High 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. It's great to see that Griffon insiders own 7.9% of the company, worth about US$302m. 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 Griffon Tell Us?

Insiders sold Griffon shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Griffon is profitable and growing, we're not too worried by this. 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. While conducting our analysis, we found that Griffon has 2 warning signs and it would be unwise to ignore them.

But note: Griffon 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.