ABB President of Process Automation Peter Terwiesch Sells 37% Of Holding

We wouldn't blame ABB Ltd (VTX:ABBN) shareholders if they were a little worried about the fact that Peter Terwiesch, the President of Process Automation recently netted about CHF1.7m selling shares at an average price of CHF44.78. That's a big disposal, and it decreased their holding size by 37%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At ABB

Notably, that recent sale by Peter Terwiesch is the biggest insider sale of ABB shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CHF45.06, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was just 37% of Peter Terwiesch's stake.

ABB insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 0.09% of ABB shares, worth about CHF79m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About ABB Insiders?

Insiders haven't bought ABB stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that ABB is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for ABB you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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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.