Stock Analysis

Don't Ignore The Fact That This Insider Just Sold Some Shares In Lowe's Companies, Inc. (NYSE:LOW)

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We wouldn't blame Lowe's Companies, Inc. (NYSE:LOW) shareholders if they were a little worried about the fact that Donald Frieson, a company insider, recently netted about US$1.9m selling shares at an average price of US$197. That's a big disposal, and it decreased their holding size by 34%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At Lowe's Companies

The Executive VP, Ross McCanless, made the biggest insider sale in the last 12 months. That single transaction was for US$5.1m worth of shares at a price of US$213 each. So what is clear is that an insider saw fit to sell at around the current price of US$197. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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).

In the last year Lowe's Companies insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:LOW Insider Trading Volume March 19th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Insiders own 0.07% of Lowe's Companies shares, worth about US$85m. 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 Lowe's Companies Insider Transactions Indicate?

An insider hasn't bought Lowe's Companies 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. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While we like knowing 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. Be aware that Lowe's Companies is showing 3 warning signs in our investment analysis, and 1 of those can't be ignored...

Of course Lowe's Companies 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, but not derivative transactions.

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