Insider Returns Down To US$316k As Babcock & Wilcox Enterprises' Stock Dips 14%

Babcock & Wilcox Enterprises, Inc. (NYSE:BW) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 14% decline in the stock price. After accounting for the recent loss, the US$245.5k worth of shares they purchased is now worth US$561.7k, suggesting a good return on their investment.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Babcock & Wilcox Enterprises

Babcock & Wilcox Enterprises Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive VP Louis Salamone for US$57k worth of shares, at about US$1.15 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.53. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Babcock & Wilcox Enterprises insiders may have bought shares in the last year, but they didn't sell any. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Babcock & Wilcox Enterprises Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.2% of Babcock & Wilcox Enterprises shares, worth about US$10m. 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 Do The Babcock & Wilcox Enterprises Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Babcock & Wilcox Enterprises insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Babcock & Wilcox Enterprises you should be aware of, and 1 of them is concerning.

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.