Don't Ignore The Insider Selling In NWPX Infrastructure
Anyone interested in NWPX Infrastructure, Inc. (NASDAQ:NWPX) should probably be aware that the Lead Independent Director, Michael Franson, recently divested US$369k worth of shares in the company, at an average price of US$105 each. The eyebrow raising move amounted to a reduction of 18% in their holding.
The Last 12 Months Of Insider Transactions At NWPX Infrastructure
Notably, that recent sale by Michael Franson is the biggest insider sale of NWPX Infrastructure shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$105. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
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!
View our latest analysis for NWPX Infrastructure
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Insider Ownership Of NWPX Infrastructure
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. NWPX Infrastructure insiders own about US$31m worth of shares. That equates to 3.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About NWPX Infrastructure Insiders?
An insider hasn't bought NWPX Infrastructure stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, NWPX Infrastructure makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NWPX Infrastructure. Every company has risks, and we've spotted 2 warning signs for NWPX Infrastructure (of which 1 is a bit unpleasant!) you should know about.
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.
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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.