We wouldn't blame Reliance Worldwide Corporation Limited (ASX:RWC) shareholders if they were a little worried about the fact that Heath Sharp, the CEO, MD & Director recently netted about AU$2.6m selling shares at an average price of AU$4.92. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Reliance Worldwide

Reliance Worldwide Insider Transactions Over The Last Year

Notably, that recent sale by Heath Sharp is the biggest insider sale of Reliance Worldwide shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$4.83. While we don't usually like to see insider selling, it's more concerning if the sales take place 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).

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Reliance Worldwide better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 0.4% of Reliance Worldwide shares, worth about AU$14m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Reliance Worldwide Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Reliance Worldwide makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! Of course, the future is what matters most. So if you are interested in Reliance Worldwide, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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.