Quite a few insiders have dramatically grown their holdings in Spectrum Brands Holdings, Inc. (NYSE:SPB) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Spectrum Brands Holdings Insider Transactions Over The Last Year

The Executive Chairman & CEO David Maura made the biggest insider purchase in the last 12 months. That single transaction was for US$2.7m worth of shares at a price of US$67.27 each. We do like to see buying, but this purchase was made at well below the current price of US$83.93. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months Spectrum Brands Holdings insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Of Spectrum Brands Holdings

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 Spectrum Brands Holdings insiders own 3.4% of the company, worth about US$81m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Spectrum Brands Holdings Insiders?

It doesn't really mean much that no insider has traded Spectrum Brands Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Spectrum Brands Holdings and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spectrum Brands Holdings. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Spectrum Brands Holdings.

But note: Spectrum Brands Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com