Sherwin-Williams President & GM of Global Supply Chain Division and Consumer Brands Group Colin Davie Sells 32% Of Holding

Some The Sherwin-Williams Company (NYSE:SHW) shareholders may be a little concerned to see that the President & GM of Global Supply Chain Division and Consumer Brands Group, Colin Davie, recently sold a substantial US$1.0m worth of stock at a price of US$360 per share. That sale reduced their total holding by 32% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Sherwin-Williams

The Last 12 Months Of Insider Transactions At Sherwin-Williams

In fact, the recent sale by Colin Davie was the biggest sale of Sherwin-Williams shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$362, 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 32% of Colin Davie's holding.

Sherwin-Williams insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Sherwin-Williams

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. Sherwin-Williams insiders own about US$279m worth of shares (which is 0.3% of the company). 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 Sherwin-Williams Insiders?

An insider sold Sherwin-Williams shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, Sherwin-Williams makes money, and is growing profits. 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. Case in point: We've spotted 2 warning signs for Sherwin-Williams you should be aware of.

But note: Sherwin-Williams 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.

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

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.