Those following along with Herman Miller, Inc. will no doubt be intrigued by the recent purchase of shares by Michael Volkema, Independent Non-Executive Chairman of the company, who spent a stonking US$536k on stock at an average price of US$21.44. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 25%.
In the last twelve months, the biggest single sale by an insider was when the President of North America Contract, Gregory Bylsma, sold US$614k worth of shares at a price of US$46.17 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$20.96). So it may not tell us anything about how insiders feel about the current share price.
Michael Volkema bought a total of 50.00k shares over the year at an average price of US$21.69.
Does Herman Miller Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Herman Miller insiders own about US$7.7m worth of shares (which is 0.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Herman Miller 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. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Herman Miller insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Herman Miller is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
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. 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.