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Investors who take an interest in Sealed Air Corporation (NYSE:SEE) should definitely note that the CEO, President & Director, Edward Doheny, recently paid US$33.85 per share to buy US$339k worth of the stock. Although the purchase only increased their holding by 1.5%, it is still a solid purchase in our view.
Check out our latest analysis for Sealed Air
The Last 12 Months Of Insider Transactions At Sealed Air
Notably, that recent purchase by Edward Doheny is the biggest insider purchase of Sealed Air shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$33.93. Of course they may have changed their mind. But this suggests they are optimistic. 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. The good news for Sealed Air share holders is that insiders were buying at near the current price.
In the last twelve months Sealed Air insiders were buying shares, but not selling. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Sealed Air insiders own about US$38m worth of shares. That equates to 0.8% 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 Sealed Air Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Sealed Air we think they are probably pretty confident of a bright future. 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. Case in point: We've spotted 1 warning sign for Sealed Air you should be aware of.