Executive VP & CFO Kenneth Giacobbe Sold A Bunch Of Shares In Howmet Aerospace

Some Howmet Aerospace Inc. (NYSE:HWM) shareholders may be a little concerned to see that the Executive VP & CFO, Kenneth Giacobbe, recently sold a substantial US$15m worth of stock at a price of US$96.58 per share. That sale reduced their total holding by 50% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Howmet Aerospace

Howmet Aerospace Insider Transactions Over The Last Year

Notably, that recent sale by Kenneth Giacobbe is the biggest insider sale of Howmet Aerospace shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$97.08, an insider wanted to cash in some shares. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 50% of Kenneth Giacobbe's holding.

Insiders in Howmet Aerospace didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Howmet Aerospace

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Howmet Aerospace insiders own 1.1% of the company, worth about US$440m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Howmet Aerospace Tell Us?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since Howmet Aerospace is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Howmet Aerospace. In terms of investment risks, we've identified 2 warning signs with Howmet Aerospace and understanding them should be part of your investment process.

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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.