We'd be surprised if Xylem Inc. (NYSE:XYL) shareholders haven't noticed that the Independent Director, Victoria Harker, recently sold US$213k worth of stock at US$106 per share. On the bright side, that sale was only 9.5% of their holding, so we doubt it's very meaningful, on its own.

Check out our latest analysis for Xylem

The Last 12 Months Of Insider Transactions At Xylem

Over the last year, we can see that the biggest insider sale was by the Senior VP and President of Europe, Hayati Yarkadas, for US$485k worth of shares, at about US$100 per share. That means that even when the share price was below the current price of US$108, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 57% of Hayati Yarkadas's stake.

Xylem 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!

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

Does Xylem Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.3% of Xylem shares, worth about US$70m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Xylem Insider Transactions Indicate?

An insider sold Xylem shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Xylem is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 1 warning sign for Xylem that deserve your attention before buying any shares.

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.