Yahoo Finance Claude Mongeau Bought 39% More Shares In Norfolk Southern
Norfolk Southern Corporation (NYSE:NSC) shareholders (or potential shareholders) will be happy to see that the Independent Chairman, Claude Mongeau, recently bought a whopping US$1.2m worth of stock, at a price of US$221. Not only is that a big swing, but it increased their holding size by 39%, which is definitely great to see.
See our latest analysis for Norfolk Southern
The Last 12 Months Of Insider Transactions At Norfolk Southern
In fact, the recent purchase by Claude Mongeau was the biggest purchase of Norfolk Southern shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$225. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Norfolk Southern insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 10.73k shares worth US$2.4m. On the other hand they divested 4.19k shares, for US$958k. In total, Norfolk Southern insiders bought more than they sold over the last year. 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!
Norfolk Southern is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Norfolk Southern Boast High Insider Ownership?
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. Norfolk Southern insiders own about US$54m worth of shares. That equates to 0.1% of the company. 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 Do The Norfolk Southern Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Norfolk Southern insiders are well aligned, and that they may think the share price is too low. 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. To that end, you should learn about the 4 warning signs we've spotted with Norfolk Southern (including 1 which is a bit unpleasant).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
