We wouldn’t blame Watts Water Technologies, Inc. (NYSE:WTS) shareholders if they were a little worried about the fact that Timothy Horne, the Director Emeritus recently netted about US$4.9m selling shares at an average price of US$98.38. That diminished their holding by a very significant 68%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Watts Water Technologies
Notably, that recent sale by Timothy Horne is the biggest insider sale of Watts Water Technologies 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$94.92. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Watts Water Technologies insiders didn’t buy any shares over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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. Watts Water Technologies insiders own about US$627m worth of shares (which is 20% of the company). 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 Do The Watts Water Technologies Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And there weren’t any purchases to give us comfort, over the last year. But since Watts Water Technologies is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Watts Water Technologies.
But note: Watts Water Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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