Have Insiders Sold Meritage Homes Shares Recently?

We wouldn't blame Meritage Homes Corporation (NYSE:MTH) shareholders if they were a little worried about the fact that Phillippe Lord, the CEO, Executive VP & Director recently netted about US$556k selling shares at an average price of US$80.01. However, that sale only accounted for 3.0% of their holding, so arguably it doesn't say much about their conviction.

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Meritage Homes Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Steven Hilton for US$820k worth of shares, at about US$74.51 per share. That means that an insider was happy to buy shares at around the current price of US$80.08. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices. We note that Steven Hilton was both the biggest buyer and the biggest seller.

In the last twelve months insiders purchased 22.24k shares for US$1.6m. On the other hand they divested 17.95k shares, for US$1.4m. Overall, Meritage Homes insiders were net buyers during the last year. 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!

See our latest analysis for Meritage Homes

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Meritage Homes

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. Meritage Homes insiders own 2.3% of the company, currently worth about US$129m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Meritage Homes Insiders?

The stark truth for Meritage Homes is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. And insider ownership remains quite considerable. So we're not too bothered by recent selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Meritage Homes. At Simply Wall St, we've found that Meritage Homes has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course Meritage Homes 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.

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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.