Whilst it may not be a huge deal, we thought it was good to see that the Alexander & Baldwin, Inc. (NYSE:ALEX) President, Christopher Benjamin, recently bought US$56k worth of stock, for US$14.00 per share. That might not be a big purchase but it only increased their holding by 1.5%, and could be interpreted as a good sign.
Alexander & Baldwin Insider Transactions Over The Last Year
Notably, that recent purchase by Christopher Benjamin is the biggest insider purchase of Alexander & Baldwin shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$13.44). 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.
While Alexander & Baldwin insiders bought shares last year, they didn't sell. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Alexander & Baldwin is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Alexander & Baldwin
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.5% of Alexander & Baldwin shares, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Alexander & Baldwin Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Alexander & Baldwin insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Alexander & Baldwin.
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 email@example.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.
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