We wouldn't blame Modine Manufacturing Company (NYSE:MOD) shareholders if they were a little worried about the fact that Eric McGinnis, the President of Climate Solutions recently netted about US$11m selling shares at an average price of US$285. Probably the most concerning element of the whole transaction is that the disposal amounted to 56% of their entire holding.

The Last 12 Months Of Insider Transactions At Modine Manufacturing

Notably, that recent sale by Eric McGinnis is the biggest insider sale of Modine Manufacturing shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$302). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 56% of Eric McGinnis's stake.

In the last year Modine Manufacturing insiders didn't buy any company stock. 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!

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Does Modine Manufacturing Boast High Insider Ownership?

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. Modine Manufacturing insiders own about US$257m worth of shares (which is 1.6% 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 Do The Modine Manufacturing Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about 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. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Modine Manufacturing.

Of course Modine Manufacturing 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.