Yahoo Finance Bullish insiders at Glatfelter Corporation (NYSE:GLT) loaded up on US$1.1m of stock earlier this year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Glatfelter Corporation's (NYSE:GLT) instance, it's good news for shareholders.
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.
View our latest analysis for Glatfelter
Glatfelter Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Kevin Fogarty bought US$335k worth of shares at a price of US$13.78 per share. That means that an insider was happy to buy shares at above the current price of US$4.04. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for 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.
While Glatfelter insiders bought shares during the last year, they didn't sell. They paid about US$6.57 on average. This is nice to see since it implies that insiders might see value around current prices. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Glatfelter is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Glatfelter
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$5.0m worth of Glatfelter stock, about 2.8% of the company. We consider this fairly low insider ownership.
So What Do The Glatfelter Insider Transactions Indicate?
The fact that there have been no Glatfelter insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Glatfelter insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Glatfelter and understanding these should be part of your investment process.
Of course Glatfelter 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.
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