share_log

Have Insiders Sold Franklin Electric Shares Recently?

Simply Wall St ·  12/06/2023 18:18

Some Franklin Electric Co., Inc. (NASDAQ:FELE) shareholders may be a little concerned to see that the Chairman & CEO, Gregg Sengstack, recently sold a substantial US$812k worth of stock at a price of US$90.25 per share. However, that sale only accounted for 2.2% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Franklin Electric

The Last 12 Months Of Insider Transactions At Franklin Electric

In fact, the recent sale by Chairman & CEO Gregg Sengstack was not their only sale of Franklin Electric shares this year. Earlier in the year, they fetched US$98.54 per share in a -US$1.2m sale. That means that an insider was selling shares at around the current price of US$90.46. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Franklin Electric insiders didn't buy any shares over the last year. 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!

insider-trading-volume
NasdaqGS:FELE Insider Trading Volume December 6th 2023

I will like Franklin Electric better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Franklin Electric

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. Franklin Electric insiders own 14% of the company, currently worth about US$592m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Franklin Electric Insiders?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Franklin Electric makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Franklin Electric has 1 warning sign we think you should be aware of.

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.

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

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment