Many Xylem Inc. (NYSE:XYL) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Xylem
In the last twelve months, the biggest single sale by an insider was when the Senior VP & President of Water Infrastructure, Hayati Yarkadas, sold US$1.2m worth of shares at a price of US$128 per share. That means that an insider was selling shares at around the current price of US$121. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In total, Xylem insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Are Xylem Insiders Buying Or Selling?
In the last three months, Independent Director Lila Tretikov bought US$528. But that was only a smidgen more than the US$480 worth of sales. Overall, we don't think these recent trades are particularly informative, one way or the other.
Does Xylem Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Xylem insiders own 0.6% of the company, currently worth about US$187m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Xylem Insider Transactions Indicate?
Insider sales and purchases have netted out over the last three months, so it's hard to draw any conclusion from recent trading. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Xylem insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in Xylem, you should check out this free report on analyst forecasts for the company.
But note: Xylem 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.
