Don't Ignore The Fact That This Insider Just Sold Some Shares In Mohawk Industries, Inc. (NYSE:MHK)

Some Mohawk Industries, Inc. (NYSE:MHK) shareholders may be a little concerned to see that the Chairman & CEO, Jeffrey Lorberbaum, recently sold a substantial US$622k worth of stock at a price of US$120 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.05%.

View our latest analysis for Mohawk Industries

The Last 12 Months Of Insider Transactions At Mohawk Industries

Over the last year, we can see that the biggest insider purchase was by President William Wellborn for US$1.4m worth of shares, at about US$136 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$114). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. William Wellborn was the only individual insider to buy during the last year.

Over the last year we saw more insider selling of Mohawk Industries shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Insider Ownership Of Mohawk Industries

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 Mohawk Industries insiders own 16% of the company, worth about US$1.2b. 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 Mohawk Industries Insiders?

An insider hasn't bought Mohawk Industries stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 found 3 warning signs for Mohawk Industries that deserve your attention before buying any shares.

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.

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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.