Chrishan Anthon Villavarayan Bought 98% More Shares In Axalta Coating Systems
Those following along with Axalta Coating Systems Ltd. (NYSE:AXTA) will no doubt be intrigued by the recent purchase of shares by Chrishan Anthon Villavarayan, CEO, President & Director of the company, who spent a stonking US$1.0m on stock at an average price of US$29.67. That increased their holding by a full 98%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
Check out our latest analysis for Axalta Coating Systems
The Last 12 Months Of Insider Transactions At Axalta Coating Systems
Notably, that recent purchase by CEO, President & Director Chrishan Anthon Villavarayan was not the only time they bought Axalta Coating Systems shares this year. They previously made an even bigger purchase of US$1.0m worth of shares at a price of US$29.20 per share. That means that an insider was happy to buy shares at above the current price of US$28.94. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Axalta Coating Systems insiders were buying shares, but not selling. 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!
Axalta Coating Systems is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Axalta Coating Systems
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Axalta Coating Systems insiders own 0.3% of the company, worth about US$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Axalta Coating Systems Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Axalta Coating Systems shares, given these transactions (along with notable insider ownership of the company). 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 Axalta Coating Systems has 1 warning sign and it would be unwise to ignore it.
Of course Axalta Coating Systems 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
