Insiders of Mueller Industries, Inc. (NYSE:MLI) are up 41% on their US$544k purchase after Mueller Industries, Inc. (NYSE:MLI) rose 8.9% last week

Mueller Industries, Inc. (NYSE:MLI) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 8.9% resulting in a US$297m addition to the company’s market value. In other words, the original US$544k purchase is now worth US$767k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Mueller Industries

The Last 12 Months Of Insider Transactions At Mueller Industries

The Independent Director Gary Gladstein made the biggest insider purchase in the last 12 months. That single transaction was for US$544k worth of shares at a price of US$47.71 each. Even though the purchase was made at a significantly lower price than the recent price (US$67.33), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Mueller Industries Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Mueller Industries. In total, Independent Director John Hansen dumped US$64k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Mueller Industries

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Mueller Industries insiders own about US$106m worth of shares (which is 2.8% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Mueller Industries Insiders?

An insider sold Mueller Industries shares recently, but they didn't buy any. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mueller Industries. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Mueller Industries.

But note: Mueller Industries 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, but not derivative transactions.

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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.