Granite Construction Independent Director Celeste Mastin Sells 46% Of Holding

We wouldn't blame Granite Construction Incorporated (NYSE:GVA) shareholders if they were a little worried about the fact that Celeste Mastin, the Independent Director recently netted about US$801k selling shares at an average price of US$105. That's a big disposal, and it decreased their holding size by 46%, which is notable but not too bad.

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Granite Construction Insider Transactions Over The Last Year

In fact, the recent sale by Celeste Mastin was the biggest sale of Granite Construction shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$106). 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. It is worth noting that this sale was only 46% of Celeste Mastin's holding.

All up, insiders sold more shares in Granite Construction than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Granite Construction

I will like Granite Construction better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.8% of Granite Construction shares, worth about US$35m. 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 Granite Construction Insider Transactions Indicate?

Insiders haven't bought Granite Construction stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Granite Construction is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Granite Construction. In terms of investment risks, we've identified 2 warning signs with Granite Construction and understanding these should be part of your investment process.

But note: Granite Construction 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.