This CSW Industrials Insider Reduced Their Stake By 21%

Insiders were net sellers of CSW Industrials, Inc.'s (NASDAQ:CSWI ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for CSW Industrials

CSW Industrials Insider Transactions Over The Last Year

The Executive VP & Chief Strategy Officer, Donal Sullivan, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$232 each. That means that an insider was selling shares at slightly below the current price (US$340). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 21% of Donal Sullivan's holding. Donal Sullivan was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like CSW Industrials better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does CSW Industrials 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CSW Industrials insiders own 1.3% of the company, worth about US$74m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About CSW Industrials Insiders?

The fact that there have been no CSW Industrials insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by CSW Industrials insiders. But it's good to see that insiders own shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CSW Industrials. For example - CSW Industrials has 1 warning sign we think you should be aware of.

But note: CSW Industrials 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 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.