Stock Analysis

Independent Lead Director Herbert Buchwald Just Sold A Bunch Of Shares In M.D.C. Holdings, Inc. (NYSE:MDC)

Source: Shutterstock

Anyone interested in M.D.C. Holdings, Inc. (NYSE:MDC) should probably be aware that the Independent Lead Director, Herbert Buchwald, recently divested US$302k worth of shares in the company, at an average price of US$36.20 each. The eyebrow raising move amounted to a reduction of 43% in their holding.

View our latest analysis for M.D.C. Holdings

M.D.C. Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Independent Lead Director Herbert Buchwald was not the only time they sold M.D.C. Holdings shares this year. They previously made an even bigger sale of -US$375k worth of shares at a price of US$37.64 per share. So what is clear is that an insider saw fit to sell at around the current price of US$37.07. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year M.D.C. Holdings insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:MDC Insider Trading Volume March 17th 2023

I will like M.D.C. Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does M.D.C. Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that M.D.C. Holdings insiders own 14% of the company, worth about US$368m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About M.D.C. Holdings Insiders?

Insiders haven't bought M.D.C. Holdings stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. At Simply Wall St, we've found that M.D.C. Holdings has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Valuation is complex, but we're helping make it simple.

Find out whether M.D.C. Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis