Insiders were net buyers of Beazer Homes USA, Inc.'s( NYSE:BZH ) stock during the past year. That is, insiders bought more stock than they sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Beazer Homes USA Insider Transactions Over The Last Year
The Independent Director John Kelley made the biggest insider purchase in the last 12 months. That single transaction was for US$215k worth of shares at a price of US$21.50 each. That means that an insider was happy to buy shares at around the current price of US$22.45. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Beazer Homes USA insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was John Kelley.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Beazer Homes USA
There are plenty of other companies that have insiders buying up shares. You probably do notwant to miss this free list of undervalued small cap companies that insiders are buying.
Does Beazer Homes USA Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 7.5% of Beazer Homes USA shares, worth about US$48m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Beazer Homes USA Insider Transactions Indicate?
The fact that there have been no Beazer Homes USA insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Beazer Homes USA insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Beazer Homes USA. Be aware that Beazer Homes USA is showing 3 warning signs in our investment analysis , and 1 of those is significant...
Of course Beazer Homes USA 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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