Independent Non-Executive Director Sharon McCrohan Just Bought A Handful Of Shares In Reliance Worldwide Corporation Limited (ASX:RWC)
Whilst it may not be a huge deal, we thought it was good to see that the Reliance Worldwide Corporation Limited (ASX:RWC) Independent Non-Executive Director, Sharon McCrohan, recently bought AU$114k worth of stock, for AU$3.81 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for Reliance Worldwide
Reliance Worldwide Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the CEO, MD & Director, Heath Sharp, for AU$197k worth of shares, at about AU$6.24 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is AU$4.03. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Heath Sharp.
In the last twelve months insiders purchased 62.00k shares for AU$292k. On the other hand they divested 31.50k shares, for AU$197k. In total, Reliance Worldwide insiders bought more than they sold over the last year. The average buy price was around AU$4.71. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Reliance Worldwide is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.2% of Reliance Worldwide shares, worth about AU$7.2m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Reliance Worldwide Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Reliance Worldwide stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Reliance Worldwide has 2 warning signs and it would be unwise to ignore them.
Of course Reliance Worldwide 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, but not derivative transactions.
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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.
