CRH Group Chief Executive & Executive Director Albert Manifold Sells 40% Of Holding

Stock Analysis

Some CRH plc (LON:CRH) shareholders may be a little concerned to see that the Group Chief Executive & Executive Director, Albert Manifold, recently sold a substantial UK£2.9m worth of stock at a price of UK£51.48 per share. That's a big disposal, and it decreased their holding size by 40%, which is notable but not too bad.

See our latest analysis for CRH

Notably, that recent sale by Albert Manifold is the biggest insider sale of CRH 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. The good news is that this large sale was at well above current price of UK£45.32. So it may not shed much light on insider confidence at current levels.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Insiders own 0.03% of CRH shares, worth about UK£10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. But since CRH is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - CRH has 1 warning sign we think you should be aware of.

But note: CRH may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Find out whether CRH is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.

CRH plc, through its subsidiaries, manufactures and distributes building materials in Ireland and internationally.

Flawless balance sheet, good value and pays a dividend.