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随着Arconic Corporation(纽约证券交易所代码:ARNC)跌至26亿美元,内部人士可能想重新评估其69.4万美元的股票购买

2022-04-28 18:33

The recent price decline of 11% in Arconic Corporation's (NYSE:ARNC) stock may have disappointed insiders who bought US$694k worth of shares at an average price of US$31.26 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$543k, which is not what they expected.

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.

See our latest analysis for Arconic

The Last 12 Months Of Insider Transactions At Arconic

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Commercial Officer, Mark Vrablec, sold US$559k worth of shares at a price of US$35.40 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$24.44). So it is hard to draw any strong conclusion from it. Mark Vrablec was the only individual insider to sell over the last year.

Over the last year, we can see that insiders have bought 22.20k shares worth US$694k. But they sold 15.80k shares for US$559k. Overall, Arconic insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:ARNC Insider Trading Volume April 28th 2022

Arconic is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Arconic Have Bought Stock Recently

It's good to see that Arconic insiders have made notable investments in the company's shares. We can see that Executive VP & Chief Human Resources Officer Melissa Miller paid US$99k for shares in the company. No-one sold. This is a positive in our book as it implies some confidence.

Does Arconic 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. We usually like to see fairly high levels of insider ownership. Arconic insiders own about US$19m worth of shares. That equates to 0.7% of the company. 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 Arconic Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. 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 Arconic 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 Arconic you should know about.

But note: Arconic may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.

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