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

We'd be surprised if Mueller Industries, Inc. (NYSE:MLI) shareholders haven't noticed that the Independent Director, John Hansen, recently sold US$121k worth of stock at US$60.33 per share. However, the silver lining is that the sale only reduced their total holding by 2.7%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Mueller Industries

The Last 12 Months Of Insider Transactions At Mueller Industries

In the last twelve months, the biggest single sale by an insider was when the Chairman of the Board & CEO, Gregory Christopher, sold US$1.2m worth of shares at a price of US$48.00 per share. That means that an insider was selling shares at slightly below the current price (US$54.15). 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 3.8% of Gregory Christopher's holding.

In total, Mueller Industries insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership of Mueller Industries

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 2.7% of Mueller Industries shares, worth about US$84m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Mueller Industries Tell Us?

Insiders sold Mueller Industries shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Mueller Industries makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Mueller Industries that deserve your attention before buying any shares.

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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.