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Hexcel Insiders Added US$3.21m Of Stock To Their Holdings

Over the last year, a good number of insiders have significantly increased their holdings in Hexcel Corporation (NYSE:HXL). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

See our latest analysis for Hexcel

Hexcel Insider Transactions Over The Last Year

Notably, that recent purchase by Thomas Gentile is the biggest insider purchase of Hexcel shares that we've seen in the last year. That implies that an insider found the current price of US$73.28 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Hexcel share holders is that insiders were buying at near the current price.

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Happily, we note that in the last year insiders paid US$3.2m for 49.40k shares. But insiders sold 6.94k shares worth US$495k. In total, Hexcel insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Hexcel Insiders Bought Stock Recently

At Hexcel,over the last quarter, we have observed quite a lot more insider buying than insider selling. Insiders spent US$3.2m on shares. But we did see Executive VP & Chief Human Resources Officer Gina Fitzsimons sell shares worth US$62k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Does Hexcel Boast High 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 0.8% of Hexcel shares, worth about US$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Hexcel 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 Hexcel insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for Hexcel you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.