Some Generac Holdings Inc. (NYSE:GNRC) shareholders may be a little concerned to see that the Executive VP, Rajendra Kanuru, recently sold a substantial US$585k worth of stock at a price of US$184 per share. That's a big disposal, and it decreased their holding size by 23%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Generac Holdings
Notably, that recent sale by Rajendra Kanuru is the biggest insider sale of Generac Holdings shares that we've seen in the last year. That means that even when the share price was below the current price of US$195, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 23% of Rajendra Kanuru's holding.
In the last year Generac Holdings 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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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. Generac Holdings insiders own 1.6% of the company, currently worth about US$184m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Generac Holdings Insiders?
An insider sold Generac Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Generac Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Generac Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Generac Holdings.
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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.
