Have Insiders Sold Howmet Aerospace Shares Recently?

We wouldn't blame Howmet Aerospace Inc. (NYSE:HWM) shareholders if they were a little worried about the fact that John Plant, the Executive Chairman & CEO recently netted about US$126m selling shares at an average price of US$157. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

We've discovered 2 warning signs about Howmet Aerospace. View them for free.

Howmet Aerospace Insider Transactions Over The Last Year

In fact, the recent sale by John Plant was the biggest sale of Howmet Aerospace shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$158, 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 22% of John Plant's holding.

Howmet Aerospace insiders didn't buy any shares over the last year. 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!

Check out our latest analysis for Howmet Aerospace

I will like Howmet Aerospace better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Howmet Aerospace Boast High Insider Ownership?

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. It's great to see that Howmet Aerospace insiders own 1.1% of the company, worth about US$685m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Howmet Aerospace Insider Transactions Indicate?

Insiders haven't bought Howmet Aerospace stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Howmet Aerospace makes money, and is growing profits. 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. 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. You'd be interested to know, that we found 2 warning signs for Howmet Aerospace and we suggest you have a look.

Of course Howmet Aerospace 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 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.