We wouldn't blame Howmet Aerospace Inc. (NYSE:HWM) shareholders if they were a little worried about the fact that Neil Marchuk, the Executive VP & Chief Administrative Officer recently netted about US$11m selling shares at an average price of US$269. That's a big disposal, and it decreased their holding size by 39%, which is notable but not too bad.

Howmet Aerospace Insider Transactions Over The Last Year

In fact, the recent sale by Executive VP & Chief Administrative Officer Neil Marchuk was not their only sale of Howmet Aerospace shares this year. They previously made an even bigger sale of -US$11m worth of shares at a price of US$252 per share. That means that an insider was selling shares at slightly below the current price (US$272). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 30% of Neil Marchuk's stake.

In the last year Howmet Aerospace insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Howmet Aerospace insiders own 0.9% of the company, worth about US$999m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Howmet Aerospace Tell Us?

Insiders haven't bought Howmet Aerospace stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Howmet Aerospace makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. In terms of investment risks, we've identified 2 warning signs with Howmet Aerospace and understanding these should be part of your investment process.

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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.

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.