Yahoo Finance Trade Alert: The Chairman of the Board Of Powell Industries, Inc. (NASDAQ:POWL), Brett Cope, Has Just Spent US$227k Buying 14% More Shares
Potential Powell Industries, Inc. (NASDAQ:POWL) shareholders may wish to note that the Chairman of the Board, Brett Cope, recently bought US$227k worth of stock, paying US$22.72 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 14%.
View our latest analysis for Powell Industries
The Last 12 Months Of Insider Transactions At Powell Industries
Notably, that recent purchase by Brett Cope is the biggest insider purchase of Powell Industries shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.27). 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. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Brett Cope.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Powell Industries is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Powell Industries Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Powell Industries insiders own 23% of the company, worth about US$63m. 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 Does This Data Suggest About Powell Industries Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Powell Industries we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for Powell Industries you should know about.
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.
