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Trade Alert: The Independent Director Of Southwest Gas Holdings, Inc. (NYSE:SWX), Robert Boughner, Has Just Spent US$272k Buying Shares

Simply Wall St

Investors who take an interest in Southwest Gas Holdings, Inc. (NYSE:SWX) should definitely note that the Independent Director, Robert Boughner, recently paid US$54.39 per share to buy US$272k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 10%.

See our latest analysis for Southwest Gas Holdings

Southwest Gas Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Independent Director Robert Boughner was not the only time they bought Southwest Gas Holdings shares this year. They previously made an even bigger purchase of US$382k worth of shares at a price of US$76.49 per share. That means that even when the share price was higher than US$58.41 (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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 20.37k shares for US$1.3m. On the other hand they divested 9950 shares, for US$842k. Overall, Southwest Gas Holdings insiders were net buyers last year. Their average price was about US$64.09. This is nice to see since it implies that insiders might see value around current prices. 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!

NYSE:SWX Recent Insider Trading, March 15th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Southwest Gas Holdings insiders own about US$26m worth of shares. That equates to 0.8% 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.

What Might The Insider Transactions At Southwest Gas Holdings Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Southwest Gas Holdings we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southwest Gas Holdings. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Southwest Gas Holdings.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.