Some PWR Holdings Limited (ASX:PWH) shareholders may be a little concerned to see that the Chief Technical and Commercial Officer & Executive Director, Matthew Bryson, recently sold a substantial AU$12m worth of stock at a price of AU$11.87 per share. That's a big disposal, and it decreased their holding size by 33%, which is notable but not too bad.
Notably, that recent sale by Matthew Bryson is the biggest insider sale of PWR Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$11.85. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for PWR Holdings
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that PWR Holdings insiders own 13% of the company, worth about AU$160m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
Unfortunately, there has been more insider selling of PWR Holdings stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, PWR Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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 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.