Trade Alert: Executive VP & CFO Of PulteGroup Robert O’Shaughnessy Has Sold Stock

Some PulteGroup, Inc. (NYSE:PHM) shareholders may be a little concerned to see that the Executive VP & CFO, Robert O’Shaughnessy, recently sold a substantial US$9.6m worth of stock at a price of US$135 per share. That sale reduced their total holding by 44% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for PulteGroup

The Last 12 Months Of Insider Transactions At PulteGroup

Notably, that recent sale by Robert O’Shaughnessy is the biggest insider sale of PulteGroup shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$131. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 PulteGroup

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that PulteGroup insiders own 0.7% of the company, worth about US$202m. 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 Do The PulteGroup Insider Transactions Indicate?

Insiders haven't bought PulteGroup 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 since PulteGroup is profitable and growing, we're not too worried by this. 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 PulteGroup. For instance, we've identified 2 warning signs for PulteGroup (1 is significant) you should be aware of.

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 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.