NYSE:SEE).” data-reactid=”28″>It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Sealed Air Corporation (NYSE:SEE).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise’.
View our latest analysis for Sealed Air ” data-reactid=”36″>View our latest analysis for Sealed Air
Sealed Air Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Patrick Duff for US$525k worth of shares, at about US$35.00 per share. That means that an insider was happy to buy shares at around the current price of US$36.64. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. In this case we’re pleased to report that the insider purchases were made at close to current prices.
Happily, we note that in the last year insiders paid US$2.1m for 69.00k shares. On the other hand they divested 13.23k shares, for US$456k. In the last twelve months there was more buying than selling by Sealed Air insiders. Their average price was about US$29.91. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!
list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”52″>Sealed Air 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.
Insider Ownership of Sealed Air
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 0.6% of Sealed Air shares, worth about US$34m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Sealed Air Tell Us?
3 warning signs for Sealed Air (1 is a bit unpleasant) you should be aware of.” data-reactid=”56″>The fact that there have been no Sealed Air insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Sealed Air 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 instance, we’ve identified 3 warning signs for Sealed Air (1 is a bit unpleasant) you should be aware of.
list of interesting companies with high ROE and low debt.” data-reactid=”61″>But note: Sealed Air 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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”63″>This article by Simply Wall St is general in nature. 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.