Over the last year, a good number of insiders have significantly increased their holdings in Smurfit Westrock Plc (NYSE:SW). 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Smurfit Westrock
The Last 12 Months Of Insider Transactions At Smurfit Westrock
Over the last year, we can see that the biggest insider purchase was by Group CEO & Executive Director Anthony J. Smurfit for US$2.0m worth of shares, at about US$40.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$46.87. Because the shares were purchased at a lower price, this particular buy doesn’t tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 55.50k shares for US$2.2m. On the other hand they divested 30.00k shares, for US$1.1m. In total, Smurfit Westrock 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Smurfit Westrock
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. Insiders own 0.3% of Smurfit Westrock shares, worth about US$71m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Smurfit Westrock Tell Us?
It doesn’t really mean much that no insider has traded Smurfit Westrock shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Smurfit Westrock and we see no evidence to suggest they are worried about the 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. For example, Smurfit Westrock has 2 warning signs (and 1 which is concerning) we think you should know about.
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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com