Martha Goss Is The Independent Director of American Water Works Company, Inc. (NYSE:AWK) And Just Spent US$8.8k On Shares
Even if it's not a huge purchase, we think it was good to see that Martha Goss, the Independent Director of American Water Works Company, Inc. (NYSE:AWK) recently shelled out US$8.8k to buy stock, at US$145 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
See our latest analysis for American Water Works Company
The Last 12 Months Of Insider Transactions At American Water Works Company
Over the last year, we can see that the biggest insider purchase was by Independent Director Lloyd Yates for US$232k worth of shares, at about US$116 per share. So it's clear an insider wanted to buy, at around the current price, which is US$136. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for American Water Works Company share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 2.06k shares for US$241k. On the other hand they divested 609.00 shares, for US$88k. In total, American Water Works Company insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
American Water Works Company 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 American Water Works Company
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. It appears that American Water Works Company insiders own 0.3% 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.
What Might The Insider Transactions At American Water Works Company Tell Us?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in American Water Works Company and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 1 warning sign for American Water Works Company you should know about.
But note: American Water Works Company 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.
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.
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