Possible Bearish Signals With Champion Homes Insiders Disposing Stock

Champion Homes, Inc. (NYSE:SKY) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Champion Homes Insider Transactions Over The Last Year

The Executive Vice President of Operations, Joseph Kimmell, made the biggest insider sale in the last 12 months. That single transaction was for US$452k worth of shares at a price of US$104 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$74.13). So it may not tell us anything about how insiders feel about the current share price.

In the last year Champion Homes insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Champion Homes

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Champion Homes Insiders Are Selling The Stock

The last three months saw significant insider selling at Champion Homes. In total, Executive Vice President of Operations Joseph Kimmell sold US$263k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership Of Champion Homes

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Champion Homes insiders own about US$62m worth of shares. That equates to 1.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Champion Homes Insiders?

An insider hasn't bought Champion Homes 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. But it is good to see that Champion Homes is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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.