We’d be surprised if Lennox International Inc. (NYSE:LII) shareholders haven’t noticed that the Independent Director, John Major, recently sold US$474k worth of stock at US$237 per share. That sale was 11% of their holding, so it does make us raise an eyebrow.
Lennox International Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive VP & CTO, Prakash Bedapudi, for US$830k worth of shares, at about US$277 per share. That means that an insider was selling shares at around the current price of US$237. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).
Lennox International insiders didn’t buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Lennox International
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. Lennox International insiders own about US$319m worth of shares (which is 3.5% of the company). 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 Lennox International Tell Us?
Insiders haven’t bought Lennox International stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. On the plus side, Lennox International makes money, and is growing profits. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Lennox International, you should check out this free report on analyst forecasts for the company.
Of course Lennox International 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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