Vertiv Holdings Co Insiders Sell US$8.8m Of Stock, Possibly Signalling Caution

Over the past year, many Vertiv Holdings Co (NYSE:VRT) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Vertiv Holdings Co

The Last 12 Months Of Insider Transactions At Vertiv Holdings Co

Notably, that recent sale by Roger Fradin is the biggest insider sale of Vertiv Holdings Co shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$99.32. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. 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.

Over the last year we saw more insider selling of Vertiv Holdings Co shares, than buying. 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!

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Insiders At Vertiv Holdings Co Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Vertiv Holdings Co. In total, insiders sold US$6.6m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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 1.0% of the company, currently worth about US$365m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Vertiv Holdings Co Insiders?

Insiders haven't bought Vertiv Holdings Co stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Vertiv Holdings Co. You'd be interested to know, that we found 2 warning signs for Vertiv Holdings Co and we suggest you have a look.

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.