Some AZZ Inc. (NYSE:AZZ) shareholders may be a little concerned to see that the President, Thomas Ferguson, recently sold a substantial US$3.2m worth of stock at a price of US$127 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

The Last 12 Months Of Insider Transactions At AZZ

In fact, the recent sale by Thomas Ferguson was the biggest sale of AZZ shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$128). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 14% of Thomas Ferguson's holding.

In the last year AZZ insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does AZZ Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.9% of AZZ shares, worth about US$73m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The AZZ Insider Transactions Indicate?

An insider sold AZZ shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, AZZ makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. At Simply Wall St, we've found that AZZ has 2 warning signs (1 is a bit unpleasant!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.