Lowe's Companies, Inc. (NYSE:LOW) shareholders (or potential shareholders) will be happy to see that the President, Marvin Ellison, recently bought a whopping US$1.0m worth of stock, at a price of US$104. Not only is that a big swing, but it increased their holding size by 12%, which is definitely great to see.

View our latest analysis for Lowe's Companies

Lowe's Companies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Vice President of Human Resources, Jennifer Weber, sold US$1.4m worth of shares at a price of US$113 per share. So we know that an insider sold shares at around the present share price of US$99.15. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 22.28k shares for US$2.2m. But insiders sold 13945 shares worth US$1.6m. Overall, Lowe's Companies insiders were net buyers last year. You can see the insider transactions (by 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!

NYSE:LOW Recent Insider Trading, March 12th 2020 More

Lowe's Companies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Lowe's Companies Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lowe's Companies insiders own 0.2% of the company, currently worth about US$118m 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 Do The Lowe's Companies Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Lowe's Companies insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Lowe's Companies that deserve your attention before buying any shares.

Of course Lowe's Companies 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.



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