PotlatchDeltic Corporation (NASDAQ:PCH) Executive Chairman Michael Covey Just Sold 32% of His Stake
We wouldn’t blame PotlatchDeltic Corporation (NASDAQ:PCH) shareholders if they were a bit concerned that Michael Covey, the executive chairman of the board, recently made about US$3.4 million selling shares at an average price of 55, 27 US dollars. This sale reduced their total stake by 32%, which is not negligible, but far from the worst we have seen.
See our latest analysis for PotlatchDeltic
PotlatchDeltic insider trades over the past year
Notably, this recent sale by Executive Chairman Michael Covey wasn’t the only time they sold shares of PotlatchDeltic this year. Previously, they made an even bigger sale of shares worth -$4.8 million at a price of $60.83 per share. We usually don’t like insider selling, but the lower the selling price, the more we’re concerned about it. It is reassuring that this sale was made at a price well above the current share price of US$54.90. It is therefore difficult to draw a firm conclusion.
PotlatchDeltic insiders did not buy any shares last year. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you want to know exactly who sold, how much and when, just click on the chart below!
If you like buying stocks that insiders are buying, rather than selling, then you might love this free list of companies. (Hint: insiders bought them).
Does PotlatchDeltic boast high insider ownership?
I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. High insider participation often makes company management more concerned with the interests of shareholders. PotlatchDeltic insiders appear to own 2.4% of the company, worth around $90 million. This level of insider ownership is good, but just short of being particularly noteworthy. This certainly suggests a reasonable degree of alignment.
So what does this data suggest about PotlatchDeltic insiders?
An insider hasn’t bought any PotlatchDeltic stock in the past three months, but there have been some sales. And there have been no purchases to comfort us in the past year. But it’s good to see PotlatchDeltic increasing its profits. Although the insiders own shares, they don’t own a whole lot and they sold. We would exercise caution before purchasing! So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Our analysis shows 4 warning signs for PotlatchDeltic (1 does not suit us too much!) and we strongly recommend that you consult them before investing.
Sure PotlatchDeltic may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.