It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we’ll take a look at whether insiders have been buying or selling shares in PolyOne Corporation (NYSE:POL).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
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PolyOne Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Independent Director William Powell for US$821k worth of shares, at about US$43.30 per share. That is hardly a positive sign, even though it took place above the latest price (US$32.67). So it may not shed much light on insider confidence at current levels. William Powell was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 21.05k shares worth US$650k. On the other hand they divested 19.00k shares, for US$821k. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
PolyOne 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.
PolyOne Insiders Bought Stock Recently
Over the last quarter, PolyOne insiders have spent a meaningful amount on shares. Specifically, J. Horn bought US$190k worth of shares in that time, and we didn’t record any sales whatsoever. This makes one think the business has some good points.
Does PolyOne Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that PolyOne insiders own 0.8% of the company, worth about US$22m. 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 PolyOne Tell Us?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn’t so positive. We don’t take much heart from transactions by PolyOne insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for PolyOne.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.