Insiders rewarded with a US$283k addition on top of their US$1.6m purchase as The Middleby Corporation (NASDAQ:MIDD) hits US$8.6b
Insiders who bought The Middleby Corporation (NASDAQ:MIDD) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$499m as a result of the stock's 6.1% gain over the same period. As a result, the stock they originally bought for US$1.6m is now worth US$1.9m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Middleby
Middleby Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by CEO & Director Timothy FitzGerald for US$992k worth of shares, at about US$132 per share. We do like to see buying, but this purchase was made at well below the current price of US$160. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 11.59k shares for US$1.6m. But they sold 5.38k shares for US$840k. In the last twelve months there was more buying than selling by Middleby insiders. 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!
Middleby is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Middleby Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Middleby. In total, insiders sold US$230k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Middleby Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.0% of Middleby shares, worth about US$89m. 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 Do The Middleby Insider Transactions Indicate?
Insiders sold Middleby shares recently, but they didn't buy any. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So the recent selling doesn't worry us too much. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 2 warning signs for Middleby (1 is significant) you should be aware of.
But note: Middleby 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, but not derivative transactions.
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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.
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