Trade Alert: CEO & Chairman Of Vulcan Materials James Hill Has Sold Stock

We wouldn't blame Vulcan Materials Company (NYSE:VMC) shareholders if they were a little worried about the fact that James Hill, the CEO & Chairman recently netted about US$22m selling shares at an average price of US$275. Probably the most concerning element of the whole transaction is that the disposal amounted to 92% of their entire holding.

We've discovered 2 warning signs about Vulcan Materials. View them for free.

The Last 12 Months Of Insider Transactions At Vulcan Materials

Notably, that recent sale by James Hill is the biggest insider sale of Vulcan Materials 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$272. While insider selling is a negative, to us, it is more negative if the shares are sold 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 Vulcan Materials 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!

View our latest analysis for Vulcan Materials

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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. 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.

So What Do The Vulcan Materials Insider Transactions Indicate?

Insiders haven't bought Vulcan Materials stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Vulcan Materials is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. In terms of investment risks, we've identified 2 warning signs with Vulcan Materials and understanding these should be part of your investment process.

But note: Vulcan Materials 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.

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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.