We wouldn't blame Vertiv Holdings Co (NYSE:VRT) shareholders if they were a little worried about the fact that Roger Fradin, the Independent Director recently netted about US$5.2m selling shares at an average price of US$104. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.
Vertiv Holdings Co Insider Transactions Over The Last Year
In fact, the recent sale by Roger Fradin was the biggest sale of Vertiv Holdings Co shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$100. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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).
In total, Vertiv Holdings Co insiders sold more than they bought over the last year. 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!
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Does Vertiv Holdings Co Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Vertiv Holdings Co insiders own 1.0% of the company, currently worth about US$374m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Vertiv Holdings Co Insider Transactions Indicate?
Insiders sold Vertiv Holdings Co shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But it is good to see that Vertiv Holdings Co is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Vertiv Holdings Co.
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.