Trade Alert: Executive Chairman of the Board Of McCormick Lawrence Kurzius Has Sold Stock

Some McCormick & Company, Incorporated (NYSE:MKC) shareholders may be a little concerned to see that the Executive Chairman of the Board, Lawrence Kurzius, recently sold a substantial US$1.9m worth of stock at a price of US$75.00 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

See our latest analysis for McCormick

McCormick Insider Transactions Over The Last Year

Notably, that recent sale by Lawrence Kurzius is the biggest insider sale of McCormick shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$74.23. While we don't usually like to see insider selling, it's more concerning if the sales take place 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 McCormick 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!

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Insider Ownership Of McCormick

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. McCormick insiders own about US$78m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The McCormick Insider Transactions Indicate?

Insiders haven't bought McCormick 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 McCormick is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - McCormick has 2 warning signs we think you should be aware of.

Of course McCormick 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com