Whilst it may not be a huge deal, we thought it was good to see that the PWR Holdings Limited (ASX:PWH) Chairman, Teresa Handicott, recently bought AU$23k worth of stock, for AU$4.62 per share. That purchase might not be huge but it did increase their holding by 19.6%.
See our latest analysis for PWR Holdings
The Last 12 Months Of Insider Transactions At PWR Holdings
The MD, CEO & Executive Director, Kees Weel, made the biggest insider sale in the last 12 months. That single transaction was for AU$16m worth of shares at a price of AU$3.60 each. That means that an insider was selling shares at slightly below the current price (AU$4.50). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. It is worth noting that this sale was only 13.1% of Kees Weel’s holding. Kees Weel was the only individual insider to sell shares in the last twelve months.
Kees Weel divested 7.0m shares over the last 12 months at an average price of AU$3.92. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Does PWR Holdings 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. It appears that PWR Holdings insiders own 32% of the company, worth about AU$144m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At PWR Holdings Tell Us?
The insider sales have outweighed the insider buying, at PWR Holdings, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. But since PWR Holdings is profitable and growing, we’re not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: PWR Holdings 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.