Brady Chief Operating Officer Thomas DeBruine Sells 43% Of Holding
We'd be surprised if Brady Corporation (NYSE:BRC) shareholders haven't noticed that the Chief Operating Officer, Thomas DeBruine, recently sold US$482k worth of stock at US$84.00 per share. The eyebrow raising move amounted to a reduction of 43% in their holding.
Brady Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Elizabeth Bruno, for US$1.8m worth of shares, at about US$75.08 per share. That means that even when the share price was below the current price of US$82.63, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.5% of Elizabeth Bruno's holding.
All up, insiders sold more shares in Brady than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Brady
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Does Brady 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Brady insiders own 6.2% of the company, currently worth about US$245m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Brady Tell Us?
An insider sold Brady shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Brady is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Brady.
But note: Brady 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.