AZZ President & COO of the Precoat Metals Business Segment Jeffrey Vellines Sells 70% Of Holding
Some AZZ Inc. (NYSE:AZZ) shareholders may be a little concerned to see that the President & COO of the Precoat Metals Business Segment, Jeffrey Vellines, recently sold a substantial US$648k worth of stock at a price of US$154 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 70% of their entire holding.
AZZ Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the President, Thomas Ferguson, for US$3.2m worth of shares, at about US$127 per share. That means that even when the share price was below the current price of US$151, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 14% of Thomas Ferguson's holding.
AZZ 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for AZZ
I will like AZZ better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership Of AZZ
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.9% of AZZ shares, worth about US$86m. 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 Does This Data Suggest About AZZ Insiders?
An insider sold AZZ shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. Every company has risks, and we've spotted 1 warning sign for AZZ you should know about.
Of course AZZ 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.