Insiders at Reliance Worldwide Corporation Limited (ASX:RWC) made a tidy sum after selling stock currently priced at AU$4.24 at a price of US$6.24

Despite the fact that Reliance Worldwide Corporation Limited (ASX:RWC) stock rose 3.2% last week, insiders who sold US$197k worth of stock in the previous 12 months are likely to be better off. Selling at an average price of US$6.24, which is higher than the current price, may have been the best move for these insiders because their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Reliance Worldwide

The Last 12 Months Of Insider Transactions At Reliance Worldwide

Over the last year, we can see that the biggest insider sale was by the Group CEO, Heath Sharp, for AU$197k worth of shares, at about AU$6.24 per share. 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 AU$4.24. So it may not tell us anything about how insiders feel about the current share price. Heath Sharp was the only individual insider to sell shares in the last twelve months.

Happily, we note that in the last year insiders paid AU$157k for 27.00k shares. 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Reliance Worldwide

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Reliance Worldwide insiders own 0.2% of the company, worth about AU$7.6m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Reliance Worldwide Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Reliance Worldwide insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Reliance Worldwide and understanding these should be part of your investment process.

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.