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Looking at Lowe's Companies, Inc.'s (NYSE:LOW ) insider transactions over the last year, we can see that insiders were net sellers. That is, there were more number of shares sold by insiders than there were purchased.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Lowe's Companies Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive Vice President of Stores, Joseph McFarland, sold US$1.1m worth of shares at a price of US$271 per share. 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$222). So it may not shed much light on insider confidence at current levels. Joseph McFarland was the only individual insider to sell shares in the last twelve months.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Lowe's Companies
I will like Lowe's Companies 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 Lowe's Companies Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Lowe's Companies insiders own 0.1% of the company, currently worth about US$139m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Lowe's Companies Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Lowe's Companies shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Lowe's Companies insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Lowe's Companies. To that end, you should learn about the 2 warning signs we've spotted with Lowe's Companies (including 1 which is potentially serious).
