Insider Spends US$101k Buying More Shares In Broadwind

Investors who take an interest in Broadwind, Inc. (NASDAQ:BWEN) should definitely note that the Independent Director, Sachin Shivaram, recently paid US$3.66 per share to buy US$101k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 104%.

View our latest analysis for Broadwind

The Last 12 Months Of Insider Transactions At Broadwind

Notably, that recent purchase by Sachin Shivaram is the biggest insider purchase of Broadwind shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$4.24), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months insiders purchased 46.53k shares for US$150k. But they sold 10.00k shares for US$40k. In the last twelve months there was more buying than selling by Broadwind insiders. The average buy price was around US$3.22. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

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. Our data indicates that Broadwind insiders own about US$9.1m worth of shares (which is 10% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Broadwind Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Broadwind stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Broadwind. At Simply Wall St, we found 2 warning signs for Broadwind that deserve your attention before buying any shares.

Of course Broadwind may not be the best stock to buy. So you may wish to see this free collection of high quality 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, 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.