Independent Director Of NVR Sold 26% Of Their Shares

We wouldn't blame NVR, Inc. (NYSE:NVR) shareholders if they were a little worried about the fact that W. Rosier, the Independent Director recently netted about US$4.6m selling shares at an average price of US$7,666. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

Check out our latest analysis for NVR

The Last 12 Months Of Insider Transactions At NVR

In fact, the recent sale by W. Rosier was the biggest sale of NVR shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$7,671. 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 26%of W. Rosier's holding.

In the last year NVR insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of NVR

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. NVR insiders own 1.0% of the company, currently worth about US$243m based on the recent share price. 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 NVR Insiders?

Insiders sold NVR shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that NVR is growing earnings. 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. When we did our research, we found 2 warning signs for NVR (1 is a bit unpleasant!) that we believe deserve your full attention.

But note: NVR may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.