Some Mohawk Industries, Inc. (NYSE:MHK) shareholders may be a little concerned to see that the Chairman & CEO, Jeffrey Lorberbaum, recently sold a substantial US$528k worth of stock at a price of US$106 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 0.06%.

Mohawk Industries Insider Transactions Over The Last Year

In fact, the recent sale by Chairman & CEO Jeffrey Lorberbaum was not their only sale of Mohawk Industries shares this year. They previously made an even bigger sale of -US$1.9m worth of shares at a price of US$121 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$107). So it may not tell us anything about how insiders feel about the current share price.

Mohawk 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Mohawk Industries Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Mohawk Industries insiders own 17% of the company, currently worth about US$1.1b 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.

So What Does This Data Suggest About Mohawk Industries Insiders?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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.

But note: Mohawk Industries may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.