Some Toll Brothers, Inc. (NYSE:TOL) shareholders may be a little concerned to see that the President & COO, Robert Parahus, recently sold a substantial US$1.3m worth of stock at a price of US$131 per share. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Toll Brothers

The Chairman & CEO, Douglas Yearley, made the biggest insider sale in the last 12 months. That single transaction was for US$7.7m worth of shares at a price of US$155 each. 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$139). So it is hard to draw any strong conclusion from it.

Insiders in Toll Brothers didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Toll Brothers

I will like Toll Brothers better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.7% of Toll Brothers shares, worth about US$90m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Toll Brothers Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Toll Brothers has 1 warning sign we think you should be aware of.

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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 of direct interests only, but not derivative transactions or indirect interests.

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