Watts Water Technologies Non-Employee Director Joseph Noonan Sells 69% Of Holding
We wouldn't blame Watts Water Technologies, Inc. (NYSE:WTS) shareholders if they were a little worried about the fact that Joseph Noonan, the Non-Employee Director recently netted about US$1.3m selling shares at an average price of US$354. That diminished their holding by a very significant 69%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Watts Water Technologies
Over the last year, we can see that the biggest insider sale was by the Chairman, Robert Pagano, for US$5.3m worth of shares, at about US$330 per share. That means that an insider was selling shares at slightly below the current price (US$352). 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. We note that the biggest single sale was only 7.8% of Robert Pagano's holding.
Watts Water Technologies insiders didn't buy any shares over the last year. 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!
Check out our latest analysis for Watts Water Technologies
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Does Watts Water Technologies 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's great to see that Watts Water Technologies insiders own 19% of the company, worth about US$2.2b. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Watts Water Technologies Tell Us?
An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Watts Water Technologies makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Watts Water Technologies. In terms of investment risks, we've identified 1 warning sign with Watts Water Technologies and understanding it should be part of your investment process.
Of course Watts Water Technologies 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.