Yahoo Finance The Independent Director of Schweitzer-Mauduit International, Inc. (NYSE:SWM), Jeffrey Keenan, Just Bought 18% More Shares
Investors who take an interest in Schweitzer-Mauduit International, Inc. (NYSE:SWM) should definitely note that the Independent Director, Jeffrey Keenan, recently paid US$26.20 per share to buy US$236k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 18%.
See our latest analysis for Schweitzer-Mauduit International
The Last 12 Months Of Insider Transactions At Schweitzer-Mauduit International
In fact, the recent purchase by Independent Director Jeffrey Keenan was not their only acquisition of Schweitzer-Mauduit International shares this year. They previously made an even bigger purchase of US$585k worth of shares at a price of US$34.72 per share. That means that even when the share price was higher than US$26.63 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
Schweitzer-Mauduit International insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Schweitzer-Mauduit International is not the only stock insiders are buying. So take a peek at this free list of growing 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.8% of Schweitzer-Mauduit International shares, worth about US$16m. 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 Schweitzer-Mauduit International Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in Schweitzer-Mauduit International shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Schweitzer-Mauduit International. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Schweitzer-Mauduit International.
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, 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.