Potential PHINIA Inc. (NYSE:PHIN) shareholders may wish to note that the President, Brady Ericson, recently bought US$397k worth of stock, paying US$39.73 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 2.7%.
We've discovered 1 warning sign about PHINIA. View them for free.PHINIA Insider Transactions Over The Last Year
Notably, that recent purchase by Brady Ericson is the biggest insider purchase of PHINIA shares that we've seen in the last year. That implies that an insider found the current price of US$41.90 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for PHINIA share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 16.38k shares worth US$671k. On the other hand they divested 10.32k shares, for US$449k. In total, PHINIA insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for PHINIA
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does PHINIA Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. It appears that PHINIA insiders own 2.0% of the company, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The PHINIA Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest PHINIA insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. While conducting our analysis, we found that PHINIA has 1 warning sign and it would be unwise to ignore it.
Of course PHINIA may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.