Independent Director Of Vertiv Holdings Co Sold 27% Of Their Shares

Some Vertiv Holdings Co (NYSE:VRT) shareholders may be a little concerned to see that the Independent Director, Steven Reinemund, recently sold a substantial US$14m worth of stock at a price of US$137 per share. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Vertiv Holdings Co

The Last 12 Months Of Insider Transactions At Vertiv Holdings Co

Notably, that recent sale by Steven Reinemund is the biggest insider sale of Vertiv Holdings Co 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$140, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 27% of Steven Reinemund's stake.

Insiders in Vertiv Holdings Co didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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).

Does Vertiv Holdings Co 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Vertiv Holdings Co insiders own 0.5% of the company, currently worth about US$243m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Vertiv Holdings Co Tell Us?

Insiders haven't bought Vertiv Holdings Co 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. But since Vertiv Holdings Co 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Vertiv Holdings Co that deserve your attention before buying any shares.

Of course Vertiv Holdings Co 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.