Yahoo Finance Bullish American Water Works Company Insiders Loaded Up On US$500.8k Of Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of American Water Works Company, Inc. (NYSE:AWK), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for American Water Works Company
American Water Works Company Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Michael Marberry bought US$493k worth of shares at a price of US$130 per share. That means that an insider was happy to buy shares at around the current price of US$132. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for American Water Works Company share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$501k for 3.84k shares. But they sold 843.00 shares for US$101k. Overall, American Water Works Company insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
American Water Works Company 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.08% of American Water Works Company shares, worth about US$22m. 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 American Water Works Company Tell Us?
It doesn't really mean much that no insider has traded American Water Works Company shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in American Water Works Company and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that American Water Works Company is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
Of course American Water Works Company 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.
