Insiders probably made the right decision selling US$998k worth of shares earlier this year as SiteOne Landscape Supply, Inc.'s (NYSE:SITE)) stock dips by 5.0%.

By
Simply Wall St
Published
May 13, 2022
NYSE:SITE
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling US$998k worth of SiteOne Landscape Supply, Inc. (NYSE:SITE) stock at an average sell price of US$247 during the past year. The company’s market cap plunged by US$298m after price dropped by 5.0% last week but insiders were able to limit their loss to an extent.

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 SiteOne Landscape Supply

The Last 12 Months Of Insider Transactions At SiteOne Landscape Supply

Over the last year, we can see that the biggest insider sale was by the Executive VP, John Guthrie, for US$998k worth of shares, at about US$247 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$126. So it is hard to draw any strong conclusion from it. John Guthrie was the only individual insider to sell shares in the last twelve months.

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!

insider-trading-volume
NYSE:SITE Insider Trading Volume May 13th 2022

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).

Insider Ownership of SiteOne Landscape Supply

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that SiteOne Landscape Supply insiders own 1.2% of the company, worth about US$67m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About SiteOne Landscape Supply Insiders?

It doesn't really mean much that no insider has traded SiteOne Landscape Supply shares in the last quarter. Still, the insider transactions at SiteOne Landscape Supply in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - SiteOne Landscape Supply has 1 warning sign we think you should be aware of.

Of course SiteOne Landscape Supply 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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