This Insider Has Just Sold Shares In Mueller Industries

Some Mueller Industries, Inc. (NYSE:MLI) shareholders may be a little concerned to see that the Independent Director, Scott Goldman, recently sold a substantial US$798k worth of stock at a price of US$79.81 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

View our latest analysis for Mueller Industries

Mueller Industries Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chairman of the Board & CEO, Gregory Christopher, for US$7.0m worth of shares, at about US$70.55 per share. That means that an insider was selling shares at slightly below the current price (US$81.28). 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. It is worth noting that this sale was only 6.4% of Gregory Christopher's holding.

Mueller Industries insiders didn't buy any shares 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Mueller Industries 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Mueller Industries insiders own 2.5% of the company, worth about US$227m. 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 hasn't bought Mueller Industries stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Mueller Industries is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Mueller Industries. At Simply Wall St, we found 1 warning sign for Mueller Industries that deserve your attention before buying any shares.

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 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.