STOCK NOW Possible Bearish Signals With CSW Industrials Insiders Disposing Stock

Possible Bearish Signals With CSW Industrials Insiders Disposing Stock

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Many CSW Industrials, Inc. (NASDAQ:CSWI) insiders ditched their stock over the past year, which may be of interest to the company’s shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

Although we don’t think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for CSW Industrials

The Last 12 Months Of Insider Transactions At CSW Industrials

Over the last year, we can see that the biggest insider sale was by the Chairman, Joseph Armes, for US$1.5m worth of shares, at about US$184 per share. So what is clear is that an insider saw fit to sell at around the current price of US$178. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).

Insiders in CSW Industrials didn’t buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:CSWI Insider Trading Volume November 26th 2023

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CSW Industrials insiders own about US$36m worth of shares. That equates to 1.3% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About CSW Industrials Insiders?

The fact that there have been no CSW Industrials insider transactions recently certainly doesn’t bother us. Still, the insider transactions at CSW Industrials in the last 12 months are not very heartening. But it’s good to see that insiders own shares in the company. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for CSW Industrials.

Of course CSW Industrials 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.

Valuation is complex, but we’re helping make it simple.

Find out whether CSW Industrials is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

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