This Park-Ohio Holdings Insider Increased Their Holding In The Last Year
From what we can see, insiders were net buyers in Park-Ohio Holdings Corp.'s (NASDAQ:PKOH ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
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.
Check out our latest analysis for Park-Ohio Holdings
The Last 12 Months Of Insider Transactions At Park-Ohio Holdings
Over the last year, we can see that the biggest insider purchase was by Director Edward Crawford for US$969k worth of shares, at about US$20.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$19.42). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Edward Crawford.
You can see the insider transactions (by companies and 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!
Park-Ohio Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Park-Ohio Holdings Have Sold Stock Recently
The last quarter saw substantial insider selling of Park-Ohio Holdings shares. Specifically, Chairman Matthew Crawford ditched US$195k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Park-Ohio Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Park-Ohio Holdings insiders own about US$86m worth of shares. That equates to 37% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Park-Ohio Holdings Insiders?
An insider sold Park-Ohio Holdings shares recently, but they didn't buy any. But we take heart from prior transactions. And insiders do own shares. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Park-Ohio Holdings has 4 warning signs (and 1 which is potentially serious) we think you should know about.
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.
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.
