We wouldn't blame Valmont Industries, Inc. (NYSE:VMI) shareholders if they were a little worried about the fact that Karel Den Daas, the Independent Director recently netted about US$515k selling shares at an average price of US$147. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.
Valmont Industries Insider Transactions Over The Last Year
In fact, the recent sale by Karel Den Daas was the biggest sale of Valmont Industries shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$141. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).
In total, Valmont 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of Valmont 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Valmont Industries insiders own about US$70m worth of shares. That equates to 2.3% 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 Valmont Industries Insiders?
Insiders sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Valmont Industries is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Valmont Industries and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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