Have Meritage Homes Insiders Been Selling Stock?

Some Meritage Homes Corporation (NYSE:MTH) shareholders may be a little concerned to see that the Executive VP, Phillippe Lord, recently sold a substantial US$2.0m worth of stock at a price of US$200 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 10.0%.

View our latest analysis for Meritage Homes

Meritage Homes Insider Transactions Over The Last Year

Notably, that recent sale by Phillippe Lord is the biggest insider sale of Meritage Homes shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$203. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 10.0% of Phillippe Lord's holding.

Insiders in Meritage Homes didn't buy any shares in the last year. 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!

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Insider Ownership Of Meritage Homes

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. Meritage Homes insiders own about US$149m worth of shares (which is 2.0% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Meritage Homes Tell Us?

Insiders haven't bought Meritage Homes stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Meritage Homes is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Meritage Homes is showing 2 warning signs in our investment analysis, and 1 of those is concerning...

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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.

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