79% Of This Southwest Gas Holdings Insider's Holdings Were Sold

Insiders were net sellers of Southwest Gas Holdings, Inc.'s (NYSE:SWX ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Southwest Gas Holdings Insider Transactions Over The Last Year

The SVP & CFO, Robert Stefani, made the biggest insider sale in the last 12 months. That single transaction was for US$525k worth of shares at a price of US$75.00 each. That means that an insider was selling shares at slightly below the current price (US$79.88). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 79% of Robert Stefani's holding. Robert Stefani was the only individual insider to sell over the last year.

Robert Stefani ditched 9.00k shares over the year. The average price per share was US$74.46. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Southwest Gas Holdings

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Southwest Gas Holdings Insiders Are Selling The Stock

The last three months saw significant insider selling at Southwest Gas Holdings. Specifically, SVP & CFO Robert Stefani ditched US$525k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does Southwest Gas Holdings 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Southwest Gas Holdings insiders own 0.5% of the company, worth about US$31m. 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?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Southwest Gas Holdings makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Southwest Gas Holdings. Every company has risks, and we've spotted 3 warning signs for Southwest Gas Holdings (of which 2 shouldn't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.