Insiders At Howmet Aerospace Sold US$28m In Stock, Alluding To Potential Weakness

The fact that multiple Howmet Aerospace Inc. (NYSE:HWM) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Howmet Aerospace

Howmet Aerospace Insider Transactions Over The Last Year

The Executive VP & CFO, Kenneth Giacobbe, made the biggest insider sale in the last 12 months. That single transaction was for US$15m worth of shares at a price of US$96.58 each. That means that an insider was selling shares at slightly below the current price (US$111). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. This single sale was just 50% of Kenneth Giacobbe's stake.

Howmet Aerospace insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Howmet Aerospace

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Howmet Aerospace insiders own 1.1% of the company, currently worth about US$484m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Howmet Aerospace Insiders?

It doesn't really mean much that no insider has traded Howmet Aerospace shares in the last quarter. While we feel good about high insider ownership of Howmet Aerospace, we can't say the same about the selling of shares. 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. For example - Howmet Aerospace has 1 warning sign we think you should be aware of.

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.