Bullish Griffon Corporation (NYSE:GFF) insiders were rewarded last week as their $645,000 investment ballooned to $880,000

Griffin Corporation (NYSE:GFF) Insiders who bought stocks over the past year were handsomely rewarded last week. The stock rose 3.9%, driving the company’s market capitalization up $67 million. In other words, the initial acquisition of US$645,000 is now worth US$880,000.

While we don’t think shareholders should simply follow insider trades, we think it makes perfect sense to keep an eye on what insiders are doing.

See our latest analysis for Griffon

The last 12 months of insider trading at Griffon

In the past twelve months, the largest single insider sale occurred when insider Mario Gabelli sold $160,000 worth of stock at $23.77 per share. This means that an insider was selling shares at a price slightly lower than the current price (US$32.80). Generally, we consider it discouraging when insiders sell below the current price, as it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, this is only a weak signal. This single sale represented 78% of Mario Gabelli’s stake. The only individual insider salesperson in the past year was Mario Gabelli.

Fortunately, we note that last year insiders paid US$645,000 for 26,820,000 shares. On the other hand, they sold 7,000 shares, for 160,000 USD. Over the past twelve months, there have been more buys than sells by Griffon insiders. 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: GFF Insider Trading Volume as of June 7, 2022

There are always plenty of stocks that insiders are buying. So if it suits your style you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).

Griffon insiders recently sold shares

We’ve seen a bit of insider selling at Griffon over the past three months. Shares worth US$160,000 were sold by insider Mario Gabelli. But at least we saw purchases worth US$150,000. While it’s not great to see insider sales, the net amount sold isn’t enough for us to want to read anything about it.

Griffon Insider Property

Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Griffon insiders own 8.1% of the company, which is currently worth around US$145 million based on recent share price. This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.

What could insider trading at Griffon tell us?

We note that there has been a bit of insider buying recently (but no selling). That said, the purchases weren’t significant. However, our analysis of transactions over the past year is encouraging. With strong insider ownership and encouraging transactions, it appears Griffon insiders believe the company has some merit. In addition to knowing insider trading taking place, it is beneficial to identify the risks that Griffon faces. Example: we have identified 2 warning signs for Griffon you should be aware, and one of them is concerning.

Sure Griffin may not be the best stock to buy. So you might want to see this free set of high quality 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.

Luisa D. Fuller