Simpson Manufacturing CEO, President & Director Michael Olosky Sells 100% Of Holding
Some Simpson Manufacturing Co., Inc. (NYSE:SSD) shareholders may be a little concerned to see that the CEO, President & Director, Michael Olosky, recently sold a substantial US$605k worth of stock at a price of US$173 per share. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.
Simpson Manufacturing Insider Transactions Over The Last Year
In fact, the recent sale by Michael Olosky was the biggest sale of Simpson Manufacturing shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$173). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of Michael Olosky's holding.
In the last year Simpson Manufacturing 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Simpson Manufacturing
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Simpson Manufacturing insiders own 0.3% of the company, worth about US$18m. 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 Simpson Manufacturing Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since Simpson Manufacturing is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 1 warning sign for Simpson Manufacturing you should know about.
But note: Simpson Manufacturing 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.