We wouldn't blame Mueller Industries, Inc. (NYSE:MLI) shareholders if they were a little worried about the fact that Gregory Christopher, the Chairman of the Board & CEO recently netted about US$14m selling shares at an average price of US$137. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.6%.

The Last 12 Months Of Insider Transactions At Mueller Industries

In fact, the recent sale by Chairman of the Board & CEO Gregory Christopher was not their only sale of Mueller Industries shares this year. Earlier in the year, they fetched US$104 per share in a -US$36m sale. That means that even when the share price was below the current price of US$135, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 22% of Gregory Christopher's holding.

Mueller 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

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Mueller Industries insiders own 2.2% of the company, worth about US$317m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Mueller Industries Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Mueller Industries is profitable and growing, we're not too worried by this. 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. For example - Mueller Industries has 1 warning sign we think you should be aware of.

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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.