Have Interface Insiders Been Selling Stock?

We'd be surprised if Interface, Inc. (NASDAQ:TILE) shareholders haven't noticed that the Chief Commercial Officer & VP, James Poppens, recently sold US$403k worth of stock at US$20.14 per share. The eyebrow raising move amounted to a reduction of 24% in their holding.

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The Last 12 Months Of Insider Transactions At Interface

Over the last year, we can see that the biggest insider sale was by the Director, Daniel Hendrix, for US$1.1m worth of shares, at about US$26.33 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$20.09. So it is hard to draw any strong conclusion from it.

In the last year Interface insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Interface

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 2.3% of Interface shares, worth about US$27m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Interface Insider Transactions Indicate?

Insiders haven't bought Interface stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Interface is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. In terms of investment risks, we've identified 1 warning sign with Interface and understanding it should be part of your investment process.

But note: Interface may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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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.