Axalta Coating Systems Insiders Added US$3.13m Of Stock To Their Holdings

Quite a few insiders have dramatically grown their holdings in Axalta Coating Systems Ltd. (NYSE:AXTA) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Axalta Coating Systems

The Last 12 Months Of Insider Transactions At Axalta Coating Systems

In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Chrishan Anthon Villavarayan bought US$1.0m worth of shares at a price of US$29.20 per share. That means that an insider was happy to buy shares at around the current price of US$29.77. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Happily, we note that in the last year insiders paid US$3.1m for 109.15k shares. But insiders sold 17.01k shares worth US$501k. Overall, Axalta Coating Systems insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Axalta Coating Systems Insiders Bought Stock Recently

Over the last quarter, Axalta Coating Systems insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$1.1m worth of shares. This is a positive in our book as it implies some confidence.

Does Axalta Coating Systems Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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 appears that Axalta Coating Systems insiders own 0.3% of the company, worth about US$22m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Axalta Coating Systems Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Axalta Coating Systems insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 1 warning sign for Axalta Coating Systems you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.