Have Mueller Industries Insiders Been Selling Stock?

We'd be surprised if Mueller Industries, Inc. (NYSE:MLI) shareholders haven't noticed that the Independent Director, John Hansen, recently sold US$111k worth of stock at US$55.40 per share. On the bright side, that sale was only 1.0% of their holding, so we doubt it's very meaningful, on its own.

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Mueller Industries Insider Transactions Over The Last Year

The Chairman of the Board & CEO, Gregory Christopher, made the biggest insider sale in the last 12 months. That single transaction was for US$23m worth of shares at a price of US$69.43 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$52.96). So it may not shed much light on insider confidence at current levels.

Mueller Industries insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Mueller Industries

I will like Mueller Industries better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Mueller Industries 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mueller Industries insiders own about US$237m worth of shares (which is 2.1% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Mueller Industries Tell Us?

Insiders sold Mueller Industries shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Mueller Industries makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Mueller Industries has 1 warning sign and it would be unwise to ignore this.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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