Installed Building Products Insiders Sold US$1.8m Of Shares Suggesting Hesitancy

Over the past year, many Installed Building Products, Inc. (NYSE:IBP) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Installed Building Products Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Administrative & Sustainability Officer, Jason Niswonger, sold US$1.4m worth of shares at a price of US$231 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$167. So it may not shed much light on insider confidence at current levels.

In the last year Installed Building Products 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Installed Building Products

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Installed Building Products insiders own 16% of the company, worth about US$744m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Installed Building Products Insiders?

It doesn't really mean much that no insider has traded Installed Building Products shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Installed Building Products insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Installed Building Products. In terms of investment risks, we've identified 1 warning sign with Installed Building Products and understanding this should be part of your investment process.

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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.