Over the past year, insiders sold US$3.4m worth of PotlatchDeltic Corporation (NASDAQ:PCH) stock at an average price of US$55.27 per share allowing them to get the most out of their money. The company's market valuation decreased by US$255m after the stock price dropped 7.0% over the past week, but insiders were spared from painful losses.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
PotlatchDeltic Insider Transactions Over The Last Year
The Executive Chairman of the Board, Michael Covey, made the biggest insider sale in the last 12 months. That single transaction was for US$3.4m worth of shares at a price of US$55.27 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$41.79. So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Michael Covey.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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
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. PotlatchDeltic insiders own about US$66m worth of shares. That equates to 1.9% 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.
What Might The Insider Transactions At PotlatchDeltic Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at PotlatchDeltic in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that PotlatchDeltic is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
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, but not derivative transactions.
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