Many Snap-on Incorporated (NYSE:SNA) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

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.

Snap-on Insider Transactions Over The Last Year

The insider, Jesus Arregui, made the biggest insider sale in the last 12 months. That single transaction was for US$2.2m worth of shares at a price of US$265 each. That means that an insider was selling shares at slightly below the current price (US$271). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 97% of Jesus Arregui's holding.

Insiders in Snap-on didn't buy any shares in 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!

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Insiders At Snap-on Have Sold Stock Recently

The last three months saw significant insider selling at Snap-on. In total, insiders dumped US$817k 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.

Insider Ownership Of Snap-on

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. Snap-on insiders own about US$290m worth of shares (which is 2.0% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Snap-on Insider Transactions Indicate?

Insiders haven't bought Snap-on stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Snap-on is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 1 warning sign for Snap-on and we suggest you have a look.

Of course Snap-on may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.