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$7.8m worth of stock at a price of US$132 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 0.6%.

Mohawk Industries Insider Transactions Over The Last Year

In fact, the recent sale by Jeffrey Lorberbaum was the biggest sale of Mohawk Industries shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$132. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Insiders in Mohawk Industries didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Mohawk 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Mohawk Industries insiders own 15% of the company, currently worth about US$1.4b 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 Mohawk Industries Tell Us?

Insiders sold Mohawk Industries shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, Mohawk Industries makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Mohawk Industries has 2 warning signs and it would be unwise to ignore them.

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.

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.