We'd be surprised if GMS Inc. (NYSE:GMS) shareholders haven't noticed that the Independent Director, Ronald Ross, recently sold US$114k worth of stock at US$27.78 per share. On the bright side, that sale was only 1.6% of their holding, so we doubt it's very meaningful, on its own.
See our latest analysis for GMS
The Last 12 Months Of Insider Transactions At GMS
Notably, that recent purchase by Independent Director Ronald Ross was not the only time they bought GMS shares this year. They previously made an even bigger purchase of US$1.6m worth of shares at a price of US$16.02 per share. We do like to see buying, but this purchase was made at well below the current price of US$28.08. 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.
In the last twelve months insiders purchased 212160 shares for US$3.3m. But they sold 33051 for US$769k. In the last twelve months there was more buying than selling by GMS insiders. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
GMS is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. GMS insiders own about US$31m worth of shares. That equates to 2.6% of the company. 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 Does This Data Suggest About GMS Insiders?
An insider sold GMS shares recently, but they didn't buy any. In contrast, they appear keener if you look at the last twelve months. We like that insiders own a fair amount of the company. So we're not overly bothered by recent selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for GMS.
But note: GMS 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, but not derivative transactions.
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