Insiders at NewMarket Corporation (NYSE:NEU) made a handsome sum after selling shares worth US$313 per share today for US$339

Despite the fact that NewMarket Corporation (NYSE:NEU) stock rose 4.9% last week, insiders who sold US$387,000 worth of stock in the past 12 months should be better off. Holding shares would have meant that their investment would be worth less today than it was when sold. So, selling at an average price of US$339, which is higher than the current price, might have been the best decision.

While we would never suggest that investors base their decisions solely on what a company’s directors have done, we would consider it foolish to completely ignore insider trading.

See our latest analysis for NewMarket

NewMarket insider trades over the past year

Independent director James Rogers has made the biggest insider sale in the last 12 months. This single transaction was for US$201,000 of shares at a price of US$341 each. So what is clear is that an insider saw fit to sell around the current price of US$313. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. In this case, the big sell was around the current price, so that’s not too bad (but still not a positive). The only individual insider salesperson in the past year was James Rogers.

James Rogers gave up 1.14k shares during the year. The average price per share was US$339. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

NYSE: NEU Insider Trading Volume February 12, 2022

If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).

Insider ownership

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. NewMarket insiders own approximately $824 million in stock (or 25% of the company). I like to see this level of insider ownership because it increases the chances that management is thinking about the best interests of shareholders.

What could insider trading at NewMarket tell us?

The fact that there haven’t been any insider trading on NewMarket recently certainly doesn’t bother us. It’s encouraging to see that insiders own a lot of stocks, but we’d like to see more insider buying, as NewMarket’s last year of insider trading doesn’t fill us with confidence. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. At Simply Wall St, we have found that NewMarket has 2 warning signs (1 is worrying!) which deserve your attention before going further in your analysis.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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