Patrick Industries, Inc. (NASDAQ:PATK) shareholders (or potential shareholders) will be happy to see that the Independent Director, M. Welch, recently bought a whopping US$887k worth of stock, at a price of US$88.23. While that only increased their holding size by 5.6%, it is still a big swing by our standards.

Patrick Industries Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Chairman of the Board, Andy Nemeth, for US$2.9m worth of shares, at about US$115 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$95.17. So it may not tell us anything about how insiders feel about the current share price.

Happily, we note that in the last year insiders paid US$4.9m for 52.38k shares. On the other hand they divested 124.07k shares, for US$14m. In total, Patrick Industries insiders sold more than they bought over the last year. The sellers received a price of around US$114, on average. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$95.17). 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!

I will like Patrick Industries better if I see some big insider buys.

Insider Ownership Of Patrick Industries

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Patrick Industries insiders own about US$134m worth of shares (which is 4.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Patrick Industries Insiders?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. 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. For example - Patrick Industries has 1 warning sign we think you should be aware of.

Of course Patrick Industries 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.

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.