This Insider Has Just Sold Shares In PotlatchDeltic Corporation (NASDAQ:PCH)

Some PotlatchDeltic Corporation (NASDAQ:PCH) shareholders may be a little concerned to see that the Executive Chairman, Michael Covey, recently sold a substantial US$972k worth of stock at a price of US$53.13 per share. However, that sale only accounted for 5.5% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for PotlatchDeltic

The Last 12 Months Of Insider Transactions At PotlatchDeltic

In fact, the recent sale by Michael Covey was the biggest sale of PotlatchDeltic shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$53.19, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 5.5% of Michael Covey's stake.

In total, PotlatchDeltic insiders sold more than they bought 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like PotlatchDeltic 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 PotlatchDeltic

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that PotlatchDeltic insiders own 3.4% of the company, worth about US$120m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At PotlatchDeltic Tell Us?

Insiders sold PotlatchDeltic shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that PotlatchDeltic is growing earnings. 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. Be aware that PotlatchDeltic is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...

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.

When trading PotlatchDeltic or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.