Insiders at Avient Corporation (NYSE:AVNT) sold US$505k worth of stock, possibly indicating weakness in the future

By
Simply Wall St
Published
September 27, 2021
NYSE:AVNT
Source: Shutterstock

Avient Corporation (NYSE:AVNT) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Avient

The Last 12 Months Of Insider Transactions At Avient

In the last twelve months, the biggest single sale by an insider was when the Senior Vice President of Mergers & Acquisitions, Joel Rathbun, sold US$464k worth of shares at a price of US$53.05 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$46.67). So it may not tell us anything about how insiders feel about the current share price.

Avient insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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:AVNT Insider Trading Volume September 27th 2021

I will like Avient better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Avient Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Avient insiders own about US$44m worth of shares. That equates to 1.0% of the company. 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 Avient Tell Us?

The fact that there have been no Avient insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Avient insiders. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Avient has 1 warning sign we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.

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