Investors who take an interest in Babcock & Wilcox Enterprises, Inc. (NYSE:BW) should definitely note that the CEO & Chairman of the Board, Kenneth Young, recently paid US$5.45 per share to buy US$163k worth of the stock. Although the purchase only increased their holding by 2.9%, it is still a solid purchase in our view.
The Last 12 Months Of Insider Transactions At Babcock & Wilcox Enterprises
Notably, that recent purchase by Kenneth Young is the biggest insider purchase of Babcock & Wilcox Enterprises shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$6.22. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Over the last year, we can see that insiders have bought 90.50k shares worth US$569k. But they sold 17.71k shares for US$127k. Overall, Babcock & Wilcox Enterprises insiders were net buyers during the last year. The average buy price was around US$6.29. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Babcock & Wilcox Enterprises is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Babcock & Wilcox Enterprises
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Babcock & Wilcox Enterprises insiders own 3.1% of the company, worth about US$17m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Babcock & Wilcox Enterprises Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Babcock & Wilcox Enterprises shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Babcock & Wilcox Enterprises (1 shouldn't be ignored!) that we believe deserve your full attention.
Of course Babcock & Wilcox Enterprises 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.