Have Park-Ohio Holdings Corp. (NASDAQ:PKOH) Insiders Been Selling Their Stock?

We'd be surprised if Park-Ohio Holdings Corp. (NASDAQ:PKOH) shareholders haven't noticed that the Independent Vice Chairman & Lead Director, James Wert, recently sold US$238k worth of stock at US$39.62 per share. However, the silver lining is that the sale only reduced their total holding by 6.1%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Park-Ohio Holdings

The Last 12 Months Of Insider Transactions At Park-Ohio Holdings

Notably, that recent sale by James Wert is the biggest insider sale of Park-Ohio Holdings shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$38.44. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Over the last year, we can see that insiders have bought 15.05k shares worth US$212k. But insiders sold 13.85k shares worth US$509k. In total, Park-Ohio Holdings insiders sold more than they bought over the last year. The sellers received a price of around US$36.75, on average. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

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Does Park-Ohio Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Park-Ohio Holdings insiders own 40% of the company, currently worth about US$180m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Park-Ohio Holdings Tell Us?

An insider sold Park-Ohio Holdings shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Park-Ohio Holdings. Every company has risks, and we've spotted 4 warning signs for Park-Ohio Holdings (of which 1 can't be ignored!) you should know about.

But note: Park-Ohio Holdings 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, but not derivative transactions.

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