Independent Director of Beazer Homes USA John Kelley Buys 169% More Shares

Potential Beazer Homes USA, Inc. (NYSE:BZH) shareholders may wish to note that the Independent Director, John Kelley, recently bought US$215k worth of stock, paying US$21.50 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 169%, potentially signalling some real optimism.

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Beazer Homes USA Insider Transactions Over The Last Year

The Independent Director Lloyd Johnson made the biggest insider purchase in the last 12 months. That single transaction was for US$510k worth of shares at a price of US$22.68 each. That means that an insider was happy to buy shares at around the current price of US$23.34. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months insiders purchased 70.02k shares for US$1.6m. But insiders sold 6.06k shares worth US$194k. In the last twelve months there was more buying than selling by Beazer Homes USA insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Beazer Homes USA

Beazer Homes USA is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Beazer Homes USA

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Beazer Homes USA insiders own about US$41m worth of shares. That equates to 6.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Beazer Homes USA Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Beazer Homes USA shares, given these transactions (along with notable insider ownership of the company). 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. Every company has risks, and we've spotted 2 warning signs for Beazer Homes USA (of which 1 is potentially serious!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.