Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of PHINIA Inc. (NYSE:PHIN), it sends a favourable message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At PHINIA

Over the last year, we can see that the biggest insider purchase was by President Brady Ericson for US$382k worth of shares, at about US$28.92 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$44.87. 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.

Happily, we note that in the last year insiders paid US$501k for 17.30k shares. On the other hand they divested 4.74k shares, for US$204k. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

PHINIA is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

PHINIA Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at PHINIA. We note insiders cashed in US$204k worth of shares. On the other hand we note Independent Director Robin Kendrick bought US$3.9k worth of shares. Generally this level of net selling might be considered a bit bearish.

Does PHINIA Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 1.6% of PHINIA shares, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At PHINIA Tell Us?

The insider sales have outweighed the insider buying, at PHINIA, in the last three months. 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. You'd be interested to know, that we found 3 warning signs for PHINIA and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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