Anyone interested in Silgan Holdings Inc. (NASDAQ:SLGN) should probably be aware that the Senior Vice President of Corporate Development, B. Prinzen, recently divested US$206k worth of shares in the company, at an average price of US$44.96 each. The eyebrow raising move amounted to a reduction of 28% in their holding.
Silgan Holdings Insider Transactions Over The Last Year
The Non-Executive Chairman, Anthony Allott, made the biggest insider sale in the last 12 months. That single transaction was for US$5.1m worth of shares at a price of US$43.31 each. So we know that an insider sold shares at around the present share price of US$43.19. While insider selling is a negative, to us, it is more negative if the shares are sold 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.
Silgan Holdings insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Silgan Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership of Silgan Holdings
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Silgan Holdings insiders own 24% of the company, worth about US$1.2b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Silgan Holdings Insiders?
Insiders haven't bought Silgan Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Silgan Holdings makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Silgan Holdings (1 is significant!) that we believe deserve your full attention.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.