NVR Independent Director Thomas Eckert Sells 48% Of Holding

Some NVR, Inc. (NYSE:NVR) shareholders may be a little concerned to see that the Independent Director, Thomas Eckert, recently sold a substantial US$3.8m worth of stock at a price of US$7,530 per share. That's a big disposal, and it decreased their holding size by 48%, which is notable but not too bad.

Check out our latest analysis for NVR

The Last 12 Months Of Insider Transactions At NVR

The Independent Director, W. Rosier, made the biggest insider sale in the last 12 months. That single transaction was for US$4.6m worth of shares at a price of US$7,666 each. So we know that an insider sold shares at around the present share price of US$7,366. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

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

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

Insider Ownership Of NVR

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It's great to see that NVR insiders own 1.0% of the company, worth about US$228m. 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 Do The NVR Insider Transactions Indicate?

An insider hasn't bought NVR stock in the last three months, but there was some selling. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NVR. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in NVR.

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.