The President of TruTeam Operations of TopBuild Corp. (NYSE:BLD), Steven Raia, Just Sold 47% Of Their Holding

Some TopBuild Corp. (NYSE:BLD) shareholders may be a little concerned to see that the President of TruTeam Operations, Steven Raia, recently sold a substantial US$1.1m worth of stock at a price of US$205 per share. That's a big disposal, and it decreased their holding size by 47%, which is notable but not too bad.

Check out our latest analysis for TopBuild

TopBuild Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CFO & VP, John Peterson, sold US$1.9m worth of shares at a price of US$200 per share. That means that an insider was selling shares at slightly below the current price (US$209). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 40% of John Peterson's holding.

TopBuild insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does TopBuild Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that TopBuild insiders own 1.3% of the company, worth about US$87m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At TopBuild Tell Us?

Insiders haven't bought TopBuild 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. On the plus side, TopBuild makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TopBuild. For example - TopBuild has 3 warning signs we think you should be aware of.

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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, but not derivative transactions.

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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.