Some MasTec, Inc. (NYSE:MTZ) shareholders may be a little concerned to see that the Independent Director, C. Campbell, recently sold a substantial US$1.3m worth of stock at a price of US$417 per share. However, that sale only accounted for 8.9% of their holding, so arguably it doesn't say much about their conviction.

The Last 12 Months Of Insider Transactions At MasTec

Over the last year, we can see that the biggest insider sale was by the Independent Director, Ernest Csiszar, for US$2.0m worth of shares, at about US$300 per share. That means that an insider was selling shares at slightly below the current price (US$412). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 27% of Ernest Csiszar's holding.

Insiders in MasTec didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like MasTec better if I see some big insider buys.

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's great to see that MasTec insiders own 22% of the company, worth about US$7.3b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About MasTec Insiders?

Insiders sold MasTec shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that MasTec is growing earnings. 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.

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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.