Multiple insiders secured a larger position in The Middleby Corporation (NASDAQ:MIDD) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company’s prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Middleby
Over the last year, we can see that the biggest insider purchase was by CEO & Director Timothy FitzGerald for US$992k worth of shares, at about US$132 per share. Even though the purchase was made at a significantly lower price than the recent price (US$148), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 12.75k shares worth US$1.8m. On the other hand they divested 4.82k shares, for US$814k. Overall, Middleby insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Middleby Have Sold Stock Recently
Over the last three months, we’ve seen significant insider selling at Middleby. Specifically, insiders ditched US$116k worth of shares in that time, and we didn’t record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
For a common shareholder, it is worth checking how many shares are held by company 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. Middleby insiders own about US$83m worth of shares. That equates to 1.0% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Do The Middleby Insider Transactions Indicate?
Insiders sold stock recently, but they haven’t been buying. On the other hand, the insider transactions over the last year are encouraging. We like that insiders own a fair amount of the company. So we’re not overly bothered by recent selling. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Middleby. Case in point: We’ve spotted 2 warning signs for Middleby you should be aware of, and 1 of these makes us a bit uncomfortable.
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, but not derivative transactions.
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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.
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