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How Many Insiders Sold Neenah, Inc. (NYSE:NP) Shares?

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Neenah, Inc. (NYSE:NP).

What Is Insider Selling?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. 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’.

Check out our latest analysis for Neenah

Neenah Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when Director Margaret Dano sold US$179k worth of shares at a price of US$71.97 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$59.95. So it is hard to draw any strong conclusion from it.

We note that in the last year insiders divested 8.32k shares for a total of US$664k. Over the last year we saw more insider selling of Neenah shares, than buying. The average sell price was around US$79.78. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$59.95). You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:NP Insider Trading January 7th 19
NYSE:NP Insider Trading January 7th 19

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Neenah Have Sold Stock Recently

The last quarter saw substantial insider selling of Neenah shares. In total, Margaret Dano sold US$179k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.

Insider Ownership of Neenah

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Neenah insiders own about US$18m worth of shares. That equates to 1.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Neenah Insiders?

An insider sold Neenah shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Neenah.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 editorial-team@simplywallst.com.

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