Don't Ignore The Fact That This Insider Just Sold Some Shares In Rexnord Corporation (NYSE:RXN)

By
Simply Wall St
Published
May 29, 2021
NYSE:RXN

Some Rexnord Corporation (NYSE:RXN) shareholders may be a little concerned to see that the President, Todd Adams, recently sold a substantial US$3.4m worth of stock at a price of US$50.00 per share. That sale reduced their total holding by 11% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Rexnord

The Last 12 Months Of Insider Transactions At Rexnord

Notably, that recent sale by Todd Adams is the biggest insider sale of Rexnord shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$49.97. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Insiders in Rexnord didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:RXN Insider Trading Volume May 30th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Rexnord

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Rexnord shares, worth about US$43m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Rexnord Tell Us?

Insiders haven't bought Rexnord stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Rexnord. To that end, you should learn about the 2 warning signs we've spotted with Rexnord (including 1 which doesn't sit too well with us).

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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