Some Koppers Holdings Inc. (NYSE:KOP) shareholders may be a little concerned to see that the President & Chief Transformation Officer, James Sullivan, recently sold a substantial US$4.0m worth of stock at a price of US$50.01 per share. That's a big disposal, and it decreased their holding size by 47%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Koppers Holdings

Notably, that recent sale by James Sullivan is the biggest insider sale of Koppers Holdings shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$45.34. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Koppers Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Koppers Holdings

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 Koppers Holdings insiders own 6.0% of the company, worth about US$52m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Koppers Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Koppers Holdings. In terms of investment risks, we've identified 2 warning signs with Koppers Holdings and understanding these should be part of your investment process.

Of course Koppers Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.