Chief Financial Officer of Babcock & Wilcox Enterprises Louis Salamone Buys 8.6% More Shares
Even if it's not a huge purchase, we think it was good to see that Louis Salamone, the Chief Financial Officer of Babcock & Wilcox Enterprises, Inc. (NYSE:BW) recently shelled out US$57k to buy stock, at US$1.15 per share. However, it only increased their shares held by 8.6%, and it wasn't a huge purchase by absolute value, either.
Check out our latest analysis for Babcock & Wilcox Enterprises
The Last 12 Months Of Insider Transactions At Babcock & Wilcox Enterprises
The insider Bryant Riley made the biggest insider purchase in the last 12 months. That single transaction was for US$578k worth of shares at a price of US$5.83 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.53). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Babcock & Wilcox Enterprises insiders may have bought shares in the last year, but they didn't sell any. They paid about US$4.09 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Babcock & Wilcox Enterprises insiders own 4.7% of the company, worth about US$6.3m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Babcock & Wilcox Enterprises Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Babcock & Wilcox Enterprises insiders are reasonably well aligned, and optimistic for the future. 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. While conducting our analysis, we found that Babcock & Wilcox Enterprises has 2 warning signs and it would be unwise to ignore these.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
