Anyone interested in Flexsteel Industries, Inc. (NASDAQ:FLXS) should probably be aware that the Chief Growth Officer, David Crimmins, recently divested US$463k worth of shares in the company, at an average price of US$80.50 each. That sale was 16% of their holding, so it does make us raise an eyebrow.

Flexsteel Industries Insider Transactions Over The Last Year

Notably, that recent sale by David Crimmins is the biggest insider sale of Flexsteel Industries shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$81.77. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 16% of David Crimmins's stake.

Flexsteel Industries insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. 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 appears that Flexsteel Industries insiders own 11% of the company, worth about US$38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Flexsteel Industries Tell Us?

Insiders haven't bought Flexsteel Industries stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Flexsteel Industries makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! 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. Be aware that Flexsteel Industries is showing 2 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

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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.

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.