Have PulteGroup Insiders Been Selling Stock?

Some PulteGroup, Inc. (NYSE:PHM) shareholders may be a little concerned to see that the Executive VP, Todd Sheldon, recently sold a substantial US$1.6m worth of stock at a price of US$107 per share. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for PulteGroup

The Last 12 Months Of Insider Transactions At PulteGroup

In the last twelve months, the biggest single sale by an insider was when the Executive Vice President, Robert O’Shaughnessy, sold US$9.6m worth of shares at a price of US$135 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$107. So it may not tell us anything about how insiders feel about the current share price.

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

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Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that PulteGroup insiders own 0.7% of the company, worth about US$162m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About PulteGroup Insiders?

Insiders sold PulteGroup shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since PulteGroup is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 PulteGroup has 2 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course PulteGroup may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.