We wouldn't blame Acuity Brands, Inc. (NYSE:AYI) shareholders if they were a little worried about the fact that Barry Goldman, the Senior VP & General Counsel recently netted about US$907k selling shares at an average price of US$305. That's a big disposal, and it decreased their holding size by 39%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Acuity Brands
In the last twelve months, the biggest single sale by an insider was when the Senior VP & Chief Human Resources Officer, Dianne Mills, sold US$1.4m worth of shares at a price of US$226 per share. That means that even when the share price was below the current price of US$302, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 73% of Dianne Mills's stake.
In total, Acuity Brands 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Acuity Brands Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.2% of Acuity Brands shares, worth about US$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Acuity Brands Insiders?
An insider sold Acuity Brands shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Acuity Brands is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Acuity Brands has 1 warning sign we think you should be aware of.
But note: Acuity Brands 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.
