Stock Analysis

Have Vulcan Materials Insiders Been Selling Stock?

NYSE:VMC
Source: Shutterstock

We wouldn't blame Vulcan Materials Company (NYSE:VMC) shareholders if they were a little worried about the fact that Thompson Baker, the President recently netted about US$4.1m selling shares at an average price of US$273. That's a big disposal, and it decreased their holding size by 24%, which is notable but not too bad.

Check out our latest analysis for Vulcan Materials

Vulcan Materials Insider Transactions Over The Last Year

In fact, the recent sale by Thompson Baker was the biggest sale of Vulcan Materials shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$260. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.

Vulcan Materials insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:VMC Insider Trading Volume May 21st 2024

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).

Does Vulcan Materials Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Vulcan Materials insiders own about US$68m worth of shares. That equates to 0.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Vulcan Materials Tell Us?

Insiders sold Vulcan Materials 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, Vulcan Materials makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vulcan Materials. For example - Vulcan Materials has 2 warning signs we think you should be aware of.

Of course Vulcan Materials 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.

Valuation is complex, but we're helping make it simple.

Find out whether Vulcan Materials is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.