Have ITT Insiders Been Selling Stock?

We wouldn't blame ITT Inc. (NYSE:ITT) shareholders if they were a little worried about the fact that Emmanuel Caprais, the Senior VP & CFO recently netted about US$1.0m selling shares at an average price of US$185. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

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ITT Insider Transactions Over The Last Year

In fact, the recent sale by Emmanuel Caprais was the biggest sale of ITT shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$188. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 21% of Emmanuel Caprais's holding.

In the last year ITT insiders didn't buy any company stock. 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!

View our latest analysis for ITT

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Does ITT 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that ITT insiders own 0.4% of the company, worth about US$54m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The ITT Insider Transactions Indicate?

Insiders sold ITT shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, ITT makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for ITT.

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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.