Insiders were net sellers of Howmet Aerospace Inc.'s (NYSE:HWM ) stock during the past year. That is, insiders sold more stock than they bought.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Howmet Aerospace Insider Transactions Over The Last Year

The Executive VP & Chief Human Resources Officer, Neil Marchuk, made the biggest insider sale in the last 12 months. That single transaction was for US$4.0m worth of shares at a price of US$50.06 each. That means that an insider was selling shares at slightly below the current price (US$81.38). 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. This single sale was just 23% of Neil Marchuk's stake. The only individual insider seller over the last year was Neil Marchuk.

Neil Marchuk ditched 157.61k shares over the year. The average price per share was US$62.10. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Howmet Aerospace Insiders Are Selling The Stock

The last three months saw significant insider selling at Howmet Aerospace. Specifically, Executive VP & Chief Human Resources Officer Neil Marchuk ditched US$2.7m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Howmet Aerospace insiders own 1.1% of the company, worth about US$358m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Howmet Aerospace Insiders?

An insider hasn't bought Howmet Aerospace stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Howmet Aerospace makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 2 warning signs for Howmet Aerospace you should know about.

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