This insider just sold shares of Snap-on Incorporated (NYSE: SNA)
We would be surprised if Snap-on incorporated (NYSE: SNA) Shareholders haven’t noticed that Independent Director Karen Daniel recently sold US $ 482,000 worth of shares at US $ 214 per share. The upward movement of the eyebrows resulted in a 21% reduction in their holding.
See our latest review for Snap-on
Instant insider trades in the past year
Notably, this recent sale by Independent Director Karen Daniel wasn’t the only time they’ve sold Snap-on stock this year. Earlier in the year, they recovered US $ 222 per share in a sale of – US $ 716,000. This means that an insider was selling shares around the current price of US $ 217. We usually don’t like to see insider sales, but the lower the selling price, the more it concerns us. We note that this sale took place at roughly the current price, so this is not a major concern, although it is not a good sign.
In the past year, Snap-on insiders haven’t bought any shares in the company. The chart below shows insider trading (by businesses and individuals) over the past year. By clicking on the graph below, you can see the exact detail of each insider trade!
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Does Snap-on Benefit From High Insider Ownership?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. Snap-on insiders own 1.5% of the company, which is currently worth around US $ 177 million based on the recent share price. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.
So what do Snap-on insider trading indicate?
An insider sold Snap-on shares recently, but they haven’t bought any. And there haven’t been any purchases to comfort us in the past year. But since Snap-on is profitable and growing, that doesn’t worry us too much. Although insiders own many shares of the company (which is good), our analysis of their transactions does not give us confidence in the company. So these insider trading can help us build a thesis about the stock, but it’s also worth knowing the risks this business faces. To help you, we have discovered 1 warning sign that you should glance around to get a better picture of Snap-on.
Sure Snap-on may not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are those persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.