We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Babcock & Wilcox Enterprises, Inc. (NYSE:BW).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. 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 logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

Check out our latest analysis for Babcock & Wilcox Enterprises

The Last 12 Months Of Insider Transactions At Babcock & Wilcox Enterprises

The insider Bryant Riley made the biggest insider purchase in the last 12 months. That single transaction was for US$111k worth of shares at a price of US$2.65 each. Even though the purchase was made at a significantly lower price than the recent price (US$3.42), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 221.00k shares for US$581k. But insiders sold 35.32k shares worth US$88k. In total, Babcock & Wilcox Enterprises 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!

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).

Babcock & Wilcox Enterprises Insiders Bought Stock Recently

It's good to see that Babcock & Wilcox Enterprises insiders have made notable investments in the company's shares. In total, insiders bought US$106k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.