Curtiss-Wright Insiders Sell US$7.6m Of Stock, Possibly Signalling Caution

In the last year, many Curtiss-Wright Corporation (NYSE:CW) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Curtiss-Wright

Curtiss-Wright Insider Transactions Over The Last Year

The insider, Sheri Fuller, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$281 each. That means that an insider was selling shares at slightly below the current price (US$354). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 34% of Sheri Fuller's holding.

In the last twelve months insiders purchased 445.00 shares for US$94k. But they sold 30.66k shares for US$7.6m. All up, insiders sold more shares in Curtiss-Wright than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Curtiss-Wright Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Curtiss-Wright. In total, Independent Director Glenda Minor sold US$151k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Curtiss-Wright insiders own about US$71m worth of shares. That equates to 0.5% of the company. 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 Curtiss-Wright Insiders?

An insider sold Curtiss-Wright shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Curtiss-Wright is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Curtiss-Wright.

But note: Curtiss-Wright 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.