This Insider Has Just Sold Shares In CSW Industrials
Some CSW Industrials, Inc. (NYSE:CSW) shareholders may be a little concerned to see that the Executive VP & Chief Strategy Officer, Donal Sullivan, recently sold a substantial US$1.6m worth of stock at a price of US$344 per share. That sale reduced their total holding by 19% which is hardly insignificant, but far from the worst we've seen.
CSW Industrials Insider Transactions Over The Last Year
In fact, the recent sale by Donal Sullivan was the biggest sale of CSW Industrials shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$348). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 19% of Donal Sullivan's stake.
All up, insiders sold more shares in CSW Industrials than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for CSW Industrials
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does CSW Industrials 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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CSW Industrials insiders own 1.3% of the company, worth about US$72m. 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 CSW Industrials Tell Us?
An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for CSW Industrials you should be aware of, and 1 of these is a bit unpleasant.
Of course CSW Industrials may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.