Have Insiders Sold TopBuild Shares Recently?

We wouldn't blame TopBuild Corp. (NYSE:BLD) shareholders if they were a little worried about the fact that Robert Buck, the CEO, President & Director recently netted about US$3.1m selling shares at an average price of US$415. However, that sale only accounted for 9.1% of their holding, so arguably it doesn't say much about their conviction.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

TopBuild Insider Transactions Over The Last Year

In fact, the recent sale by Robert Buck was the biggest sale of TopBuild shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$415, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 9.1% of Robert Buck's holding.

In the last year TopBuild insiders didn't buy any company stock. 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!

See our latest analysis for TopBuild

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does TopBuild Boast High Insider Ownership?

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. I reckon it's a good sign if insiders own a significant number of shares in the company. TopBuild insiders own about US$88m 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 TopBuild Insiders?

Insiders haven't bought TopBuild stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since TopBuild 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. To that end, you should learn about the 3 warning signs we've spotted with TopBuild (including 1 which is significant).

But note: TopBuild 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.