Yahoo Finance Axalta Coating Systems Insiders Placed Bullish Bets Worth US$2.05m
Multiple insiders secured a larger position in Axalta Coating Systems Ltd. (NYSE:AXTA) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Axalta Coating Systems
The Last 12 Months Of Insider Transactions At Axalta Coating Systems
In the last twelve months, the biggest single purchase by an insider was when Independent Director Kevin Stein bought US$1.0m worth of shares at a price of US$27.38 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$34.17. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 72.21k shares worth US$2.1m. But insiders sold 43.32k shares worth US$1.3m. In total, Axalta Coating Systems insiders bought more than they sold 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!
Axalta Coating Systems is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Axalta Coating Systems
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Axalta Coating Systems insiders own 0.4% of the company, worth about US$26m. 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 Axalta Coating Systems Insiders?
It doesn't really mean much that no insider has traded Axalta Coating Systems shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Axalta Coating Systems and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Axalta Coating Systems (1 can't be ignored!) that we believe deserve your full attention.
Of course Axalta Coating Systems 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.
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