Anyone interested in Reliance Worldwide Corporation Limited (ASX:RWC) should probably be aware that the Group CEO, Heath Sharp, recently divested AU$197k worth of shares in the company, at an average price of AU$6.24 each. However, the silver lining is that the sale only reduced their total holding by 2.2%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Reliance Worldwide
In fact, the recent sale by Heath Sharp was the biggest sale of Reliance Worldwide shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$6.20. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year, we can see that insiders have bought 34.00k shares worth AU$189k. But they sold 31.50k shares for AU$197k. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Reliance Worldwide better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Reliance Worldwide insiders own 0.2% of the company, worth about AU$11m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Reliance Worldwide Insiders?
Unfortunately, there has been more insider selling of Reliance Worldwide stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Reliance Worldwide makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Reliance Worldwide. At Simply Wall St, we found 1 warning sign for Reliance Worldwide that deserve your attention before buying any shares.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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.