We wouldn't blame Patrick Industries, Inc. (NASDAQ:PATK) shareholders if they were a little worried about the fact that Andy Nemeth, the CEO & Chairman of the Board recently netted about US$4.1m selling shares at an average price of US$137. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At Patrick Industries

Notably, that recent sale by Andy Nemeth is the biggest insider sale of Patrick Industries shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$134. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Patrick Industries insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Patrick Industries Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Patrick Industries insiders own 4.5% of the company, currently worth about US$138m based on the recent share price. 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 Does This Data Suggest About Patrick Industries Insiders?

Insiders sold Patrick Industries shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Patrick Industries is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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 - Patrick Industries has 2 warning signs we think you should be aware of.

But note: Patrick Industries 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.