Public Companies

Erick Asmussen Is The Executive VP & CFO of Arconic Corporation (NYSE:ARNC) And They Just Picked Up 5.5% More Shares

Potential Arconic Corporation (NYSE:ARNC) shareholders may wish to note that the Executive VP & CFO, Erick Asmussen, recently bought US$111k worth of stock, paying US$22.25 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 5.5%.

The Last 12 Months Of Insider Transactions At Arconic

The Independent Director William Austen made the biggest insider purchase in the last 12 months. That single transaction was for US$202k worth of shares at a price of US$11.46 each. Even though the purchase was made at a significantly lower price than the recent price (US$24.82), we still think insider buying is a positive. 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.

While Arconic insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NYSE:ARNC Insider Trading Volume March 3rd 2021

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.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. 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 1.3% of Arconic shares, worth about US$34m. 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 Arconic Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Arconic shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Arconic that deserve your attention before buying any shares.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

ARNC

Latest Companies Videos

Simply Wall St

We help you make informed decisions by giving you access to institutional quality data and analysis presented visually.

Learn More