Have TopBuild Insiders Been Selling Stock?

Some TopBuild Corp. (NYSE:BLD) shareholders may be a little concerned to see that the President of Special Operations & Executive Adviser, Steven Raia, recently sold a substantial US$540k worth of stock at a price of US$311 per share. That sale reduced their total holding by 20% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At TopBuild

The CEO, President & Director, Robert Buck, made the biggest insider sale in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$418 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$296. So it is hard to draw any strong conclusion from it.

In the last year TopBuild insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. 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

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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. TopBuild insiders own about US$50m worth of shares. That equates to 0.6% of the company. 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 Do The TopBuild Insider Transactions Indicate?

An insider sold TopBuild shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. Every company has risks, and we've spotted 2 warning signs for TopBuild you should know about.

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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.