Anyone interested in PHINIA Inc. (NYSE:PHIN) should probably be aware that the VP & GM of Global Aftermarket, Neil Fryer, recently divested US$219k worth of shares in the company, at an average price of US$42.96 each. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.
The Last 12 Months Of Insider Transactions At PHINIA
In fact, the recent sale by Neil Fryer was the biggest sale of PHINIA shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$44.88). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 100% of Neil Fryer's holding.
Over the last year, we can see that insiders have bought 4.10k shares worth US$119k. On the other hand they divested 9.83k shares, for US$423k. All up, insiders sold more shares in PHINIA than they bought, over 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!
I will like PHINIA better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. PHINIA insiders own about US$32m worth of shares. That equates to 1.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About PHINIA Insiders?
The stark truth for PHINIA is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own shares, but we're still pretty cautious, given the history of sales. 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 PHINIA. For example - PHINIA has 4 warning signs we think you should be aware of.
Of course PHINIA 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.