The fact that multiple Curtiss-Wright Corporation (NYSE:CW) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. 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, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Curtiss-Wright Insider Transactions Over The Last Year

The insider, Sheri Fuller, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$281 each. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$282. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 34% of Sheri Fuller's stake.

Over the last year, we can see that insiders have bought 445.00 shares worth US$94k. But insiders sold 35.05k shares worth US$8.4m. All up, insiders sold more shares in Curtiss-Wright 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Curtiss-Wright Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Curtiss-Wright shares over the last three months. We note insider Sheri Fuller cashed in US$3.0m worth of shares. On the other hand we note insiders bought US$51k worth of shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of Curtiss-Wright shares, worth about US$55m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Curtiss-Wright Tell Us?

Unfortunately, there has been more insider selling of Curtiss-Wright stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Curtiss-Wright is profitable and growing, we're not too worried by this. 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 Curtiss-Wright. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Curtiss-Wright.

But note: Curtiss-Wright may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com