This Insider Has Just Sold Shares In Neenah, Inc. (NYSE:NP)

By
Simply Wall St
Published
November 10, 2021
NYSE:NP
Source: Shutterstock

We note that the Neenah, Inc. (NYSE:NP) Independent Director, Margaret Dano, recently sold US$60k worth of stock for US$54.81 per share. It might not be a huge sale, but it did reduce their holding size 22%, hardly encouraging.

Check out our latest analysis for Neenah

Neenah Insider Transactions Over The Last Year

In fact, the recent sale by Margaret Dano was the biggest sale of Neenah shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$53.48. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.

In the last year Neenah insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and 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!

insider-trading-volume
NYSE:NP Insider Trading Volume November 11th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Neenah insiders own about US$10m worth of shares. That equates to 1.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Neenah Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Neenah.

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, but not derivative transactions.

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