Southwest Gas Holdings, Inc. (NYSE:SWX) stock was sold by a number of insiders in the recent year, which isn't a positive indicator for investors

Quite a few Southwest Gas Holdings, Inc. (NYSE:SWX) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Southwest Gas Holdings

The Last 12 Months Of Insider Transactions At Southwest Gas Holdings

The Senior Vice President of Operations - Southwest Gas Corporation, Eric DeBonis, made the biggest insider sale in the last 12 months. That single transaction was for US$201k worth of shares at a price of US$71.85 each. So what is clear is that an insider saw fit to sell at around the current price of US$70.47. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Southwest Gas Holdings 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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 of Southwest Gas Holdings

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Southwest Gas Holdings insiders own 0.8% of the company, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Southwest Gas Holdings Insiders?

It doesn't really mean much that no insider has traded Southwest Gas Holdings shares in the last quarter. Our analysis of Southwest Gas Holdings insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. 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. When we did our research, we found 2 warning signs for Southwest Gas Holdings (1 is a bit concerning!) that we believe deserve your full attention.

But note: Southwest Gas Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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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.