This Insider Has Just Sold Shares In Mueller Industries, Inc. (NYSE:MLI)

We note that the Mueller Industries, Inc. (NYSE:MLI) VP & Corporate Controller, Anthony Steinriede, recently sold US$94k worth of stock for US$37.75 per share. It wasn't a huge sale, but it did reduce their holding by 12%. This does not instill confidence.

View our latest analysis for Mueller Industries

Mueller Industries Insider Transactions Over The Last Year

In fact, the recent sale by Anthony Steinriede was the biggest sale of Mueller Industries shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$38.57. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 12% of Anthony Steinriede's stake.

In the last year Mueller Industries insiders didn't buy any company stock. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Mueller Industries Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.7% of Mueller Industries shares, worth about US$59m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Mueller Industries Tell Us?

Insiders sold Mueller Industries shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Mueller Industries is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Mueller Industries and we suggest you have a look.

Of course Mueller Industries 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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This article by Simply Wall St is general in nature. 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.
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