The Independent Director of NorthWestern Corporation (NASDAQ:NWE), Jan Horsfall, Just Sold 35% Of Their Holding

By
Simply Wall St
Published
February 24, 2022
NasdaqGS:NWE
Source: Shutterstock

We'd be surprised if NorthWestern Corporation (NASDAQ:NWE) shareholders haven't noticed that the Independent Director, Jan Horsfall, recently sold US$142k worth of stock at US$58.48 per share. The eyebrow raising move amounted to a reduction of 35% in their holding.

See our latest analysis for NorthWestern

The Last 12 Months Of Insider Transactions At NorthWestern

Over the last year, we can see that the biggest insider sale was by the General Counsel and VP of Regulatory & Federal Gov't Affairs, Heather Grahame, for US$475k worth of shares, at about US$59.53 per share. So what is clear is that an insider saw fit to sell at around the current price of US$57.99. 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.

Insiders in NorthWestern didn't buy any shares in 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
NasdaqGS:NWE Insider Trading Volume February 24th 2022

I will like NorthWestern 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 NorthWestern

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that NorthWestern insiders own 0.9% of the company, worth about US$28m. 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 NorthWestern Insiders?

An insider hasn't bought NorthWestern stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that NorthWestern is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. At Simply Wall St, we've found that NorthWestern has 3 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course NorthWestern 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, but not derivative transactions.

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