Anyone interested in O-I Glass, Inc. (NYSE:OI) should probably be aware that the Senior VP and Chief Sales & Marketing Officer, Arnaud Aujouannet, recently divested US$390k worth of shares in the company, at an average price of US$13.00 each. That sale was 25% of their holding, so it does make us raise an eyebrow.
We've discovered 2 warning signs about O-I Glass. View them for free.O-I Glass Insider Transactions Over The Last Year
Notably, that recent sale by Arnaud Aujouannet is the biggest insider sale of O-I Glass shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$13.44. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 25% of Arnaud Aujouannet's holding.
Happily, we note that in the last year insiders paid US$415k for 36.00k shares. But they sold 30.00k shares for US$390k. Overall, O-I Glass insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 O-I Glass
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.8% of O-I Glass shares, worth about US$37m. 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 Does This Data Suggest About O-I Glass Insiders?
An insider sold O-I Glass shares recently, but they didn't buy any. But we take heart from prior transactions. It's good to see insiders are shareholders. So we're happy enough to look past some selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for O-I Glass you should be aware of, and 1 of them makes us a bit uncomfortable.
But note: O-I Glass 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 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.