Insiders At Quaker Chemical Sold US$610k In Stock, Alluding To Potential Weakness

Quaker Chemical Corporation (NYSE:KWR) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, 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 Quaker Chemical

Quaker Chemical Insider Transactions Over The Last Year

The Senior VP & CTO, David Slinkman, made the biggest insider sale in the last 12 months. That single transaction was for US$285k worth of shares at a price of US$168 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$140. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Quaker Chemical didn't buy any shares in 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!

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Quaker Chemical Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Quaker Chemical shares. In total, Senior VP & CTO David Slinkman sold US$285k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Quaker Chemical insiders own about US$22m worth of shares. That equates to 0.9% 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.

So What Do The Quaker Chemical Insider Transactions Indicate?

An insider hasn't bought Quaker Chemical stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Quaker Chemical is growing earnings. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of 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. At Simply Wall St, we found 1 warning sign for Quaker Chemical that deserve your attention before buying any shares.

Of course Quaker Chemical 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.