Have Mohawk Industries Insiders Been Selling Stock?

Some Mohawk Industries, Inc. (NYSE:MHK) shareholders may be a little concerned to see that the CEO & Chairman, Jeffrey Lorberbaum, recently sold a substantial US$859k worth of stock at a price of US$111 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.09%.

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The Last 12 Months Of Insider Transactions At Mohawk Industries

Notably, that recent sale by CEO & Chairman Jeffrey Lorberbaum was not the only time they sold Mohawk Industries shares this year. Earlier in the year, they fetched US$121 per share in a -US$1.9m sale. That means that an insider was selling shares at around the current price of US$112. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Mohawk Industries insiders didn't buy any company stock. 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 Mohawk Industries

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Insider Ownership Of Mohawk Industries

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Mohawk Industries insiders own 16% of the company, worth about US$1.0b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Mohawk Industries Tell Us?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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 2 warning signs that you should run your eye over to get a better picture of Mohawk Industries.

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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.