Babcock & Wilcox Enterprises Insider Buyers Pleased With US$796k Return On Investment

Babcock & Wilcox Enterprises, Inc. (NYSE:BW) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 17% decline in the stock price. Reason being, despite the recent loss, insiders original purchase value of US$885.7k is now worth US$1.68m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

The Last 12 Months Of Insider Transactions At Babcock & Wilcox Enterprises

The insider Bruce Galloway made the biggest insider purchase in the last 12 months. That single transaction was for US$886k worth of shares at a price of US$0.80 each. That means that an insider was happy to buy shares at around the current price of US$0.88. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Babcock & Wilcox Enterprises insider decided to buy shares at close to current prices. Bruce Galloway was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Babcock & Wilcox Enterprises

Babcock & Wilcox Enterprises is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Babcock & Wilcox Enterprises

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Babcock & Wilcox Enterprises insiders own about US$9.9m worth of shares (which is 10% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Babcock & Wilcox Enterprises Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Babcock & Wilcox Enterprises stock. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 5 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in Babcock & Wilcox Enterprises.

Of course Babcock & Wilcox Enterprises 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.