This Insider Has Just Sold Shares In Home Depot

Some The Home Depot, Inc. (NYSE:HD) shareholders may be a little concerned to see that the Executive VP, Teresa Roseborough, recently sold a substantial US$1.0m worth of stock at a price of US$349 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

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Home Depot Insider Transactions Over The Last Year

Notably, that recent sale by Executive VP Teresa Roseborough was not the only time they sold Home Depot shares this year. They previously made an even bigger sale of -US$2.0m worth of shares at a price of US$369 per share. So what is clear is that an insider saw fit to sell at around the current price of US$344. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Home Depot insiders sold more than they bought 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 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 Home Depot

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Home Depot Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Home Depot insiders own 0.06% of the company, currently worth about US$189m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Home Depot Insiders?

Insiders sold Home Depot shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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 Home Depot has 2 warning signs and it would be unwise to ignore these.

But note: Home Depot 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.