Over the last year, a good number of insiders have significantly increased their holdings in Axalta Coating Systems Ltd. (NYSE:AXTA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Axalta Coating Systems
In the last twelve months, the biggest single purchase by an insider was when Independent Director Kevin Stein bought US$1.0m worth of shares at a price of US$27.38 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$35.23. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months insiders purchased 72.21k shares for US$2.1m. But they sold 43.32k shares for US$1.3m. Overall, Axalta Coating Systems insiders were net buyers during the last year. 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!
Axalta Coating Systems 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
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.3% of Axalta Coating Systems shares, worth about US$27m. 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 Axalta Coating Systems Insiders?
It doesn't really mean much that no insider has traded Axalta Coating Systems shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Axalta Coating Systems and their transactions don't cause us concern. While we like knowing 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. When we did our research, we found 2 warning signs for Axalta Coating Systems (1 is concerning!) that we believe deserve your full attention.
Of course Axalta Coating Systems 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.
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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.