Yahoo Finance Insider Stock Buying Reaches US$823.6k On Babcock & Wilcox Enterprises
Multiple insiders secured a larger position in Babcock & Wilcox Enterprises, Inc. (NYSE:BW) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Babcock & Wilcox Enterprises
Babcock & Wilcox Enterprises Insider Transactions Over The Last Year
The insider Bryant Riley made the biggest insider purchase in the last 12 months. That single transaction was for US$578k worth of shares at a price of US$5.83 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.23). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Babcock & Wilcox Enterprises insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.56. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Babcock & Wilcox Enterprises Have Bought Stock Recently
It's good to see that Babcock & Wilcox Enterprises insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$62k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
Does Babcock & Wilcox Enterprises Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Babcock & Wilcox Enterprises insiders own 5.7% of the company, worth about US$6.4m. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Babcock & Wilcox Enterprises Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. 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 Babcock & Wilcox Enterprises stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Babcock & Wilcox Enterprises is showing 3 warning signs in our investment analysis, and 2 of those are a bit unpleasant...
Of course Babcock & Wilcox Enterprises 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.
