Trade Alert: The Director Of American Water Works Company, Inc. (NYSE:AWK), George MacKenzie, Has Sold Some Shares Recently

We wouldn't blame American Water Works Company, Inc. (NYSE:AWK) shareholders if they were a little worried about the fact that George MacKenzie, the Director recently netted about US$1.3m selling shares at an average price of US$129. That sale reduced their total holding by 29.3% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for American Water Works Company

American Water Works Company Insider Transactions Over The Last Year

In fact, the recent sale by Director George MacKenzie was not their only sale of American Water Works Company shares this year. Earlier in the year, they fetched US$129 per share in a -US$1.3m sale. So we know that an insider sold shares at around the present share price of US$126. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last twelve months insiders purchased 1099 shares for US$100k. But they sold 17395 for US$2.1m. Over the last year we saw more insider selling of American Water Works Company shares, than buying. You can see a visual depiction of insider transactions (by 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 Ownership of American Water Works Company

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. Insiders own 0.2% of American Water Works Company shares, worth about US$48m. 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 Does This Data Suggest About American Water Works Company Insiders?

Insiders sold American Water Works Company shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, American Water Works Company makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for American Water Works Company.

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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.