Insiders who bought in the last 12 months lose an additional US$48k as CSW Industrials, Inc. (NASDAQ:CSWI) drops to US$1.7b
Insiders who acquired US$260k worth of CSW Industrials, Inc.'s (NASDAQ:CSWI) stock at an average price of US$130 in the past 12 months may be dismayed by the recent 4.5% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$211k, which is not great.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for CSW Industrials
The Last 12 Months Of Insider Transactions At CSW Industrials
In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Gambrell bought US$260k worth of shares at a price of US$130 per share. That means that even when the share price was higher than US$106 (the recent price), an insider wanted to purchase shares. 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. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Michael Gambrell.
You can see a visual depiction of insider transactions (by companies and 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
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. CSW Industrials insiders own about US$25m worth of shares. That equates to 1.5% of the company. 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 Do The CSW Industrials Insider Transactions Indicate?
It doesn't really mean much that no insider has traded CSW Industrials shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think CSW Industrials insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CSW Industrials. You'd be interested to know, that we found 1 warning sign for CSW Industrials and we suggest you have a look.
Of course CSW Industrials 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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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.
