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Insiders of Owens Corning (NYSE:OC) would have made a tidy sum after selling US$994k worth of stock at a high price
Despite the fact that Owens Corning (NYSE:OC) stock rose 7.9% last week, insiders who sold US$994k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$91.66, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Owens Corning
The Last 12 Months Of Insider Transactions At Owens Corning
The insider, Gunner Smith, made the biggest insider sale in the last 12 months. That single transaction was for US$782k worth of shares at a price of US$91.95 each. So we know that an insider sold shares at around the present share price of US$90.62. 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).
Owens Corning insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insiders At Owens Corning Have Sold Stock Recently
The last three months saw some Owens Corning insider selling. Independent Director W. Morris only netted US$34k selling shares, in that period. It's not great to see insider selling, nor the lack of recent buyers. But the volume sold is so low that it really doesn't bother us.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Owens Corning insiders own about US$66m worth of shares. That equates to 0.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Owens Corning Insiders?
We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. We're a little cautious about the insider selling at Owens Corning. But it's good to see that insiders own shares in the company. 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. Case in point: We've spotted 3 warning signs for Owens Corning you should be aware of, and 1 of these is a bit concerning.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
About NYSE:OC
Owens Corning
Manufactures and sells building and construction materials in the United States, Europe, the Asia Pacific, and internationally.
Undervalued with reasonable growth potential and pays a dividend.