Some Post Holdings, Inc. (NYSE:POST) shareholders may be a little concerned to see that the Independent Director, Gregory Lynn Curl, recently sold a substantial US$650k worth of stock at a price of US$105 per share. That sale reduced their total holding by 31% which is hardly insignificant, but far from the worst we've seen.

Post Holdings Insider Transactions Over The Last Year

The Chairman Emeritus William Stiritz made the biggest insider purchase in the last 12 months. That single transaction was for US$20m worth of shares at a price of US$109 each. That means that an insider was happy to buy shares at above the current price of US$97.27. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 224.54k shares for US$24m. On the other hand they divested 26.58k shares, for US$2.8m. In the last twelve months there was more buying than selling by Post Holdings insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by 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. Post Holdings insiders own about US$674m worth of shares (which is 15% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Post Holdings Insider Transactions Indicate?

An insider hasn't bought Post Holdings stock in the last three months, but there was some selling. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course Post Holdings 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.