This Insider Has Just Sold Shares In Eagle Materials

Some Eagle Materials Inc. (NYSE:EXP) shareholders may be a little concerned to see that the Senior VP, William Devlin, recently sold a substantial US$720k worth of stock at a price of US$312 per share. However, that sale only accounted for 8.9% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for Eagle Materials

The Last 12 Months Of Insider Transactions At Eagle Materials

The Independent Director, David Powers, made the biggest insider sale in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$241 each. That means that even when the share price was below the current price of US$312, an insider wanted to cash in some shares. 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. It is worth noting that this sale was only 33% of David Powers's holding.

In the last year Eagle Materials insiders didn't buy any company stock. 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 Eagle Materials

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. It's great to see that Eagle Materials insiders own 1.2% of the company, worth about US$127m. 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 Do The Eagle Materials Insider Transactions Indicate?

Insiders haven't bought Eagle Materials 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 Eagle Materials is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Eagle Materials.

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.