Stock Analysis

Insiders who purchased this year lose US$18k as Powell Industries, Inc. (NASDAQ:POWL) stock drops to US$20.90

  •  Updated
NasdaqGS:POWL
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Insiders who acquired US$227k worth of Powell Industries, Inc.'s (NASDAQ:POWL) stock at an average price of US$22.72 in the past 12 months may be dismayed by the recent 10% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$209k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

If you're not interested in researching POWL's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

The Last 12 Months Of Insider Transactions At Powell Industries

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Brett Cope bought US$227k worth of shares at a price of US$23.29 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.90). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Brett Cope.

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!

insider-trading-volume
NasdaqGS:POWL Insider Trading Volume September 27th 2022

Powell Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership Of Powell Industries

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. Insiders own 23% of Powell Industries shares, worth about US$57m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Powell Industries Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Powell Industries shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Powell Industries insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Powell Industries has 2 warning signs (1 can't be ignored!) that deserve your attention before going any further with your analysis.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Powell Industries is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About NasdaqGS:POWL

Powell Industries

Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems for the distribution, control, and monitoring of electrical energy.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth1
Past Performance4
Financial Health6
Dividends1

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet with proven track record.