Some BWX Technologies, Inc. (NYSE:BWXT) shareholders may be a little concerned to see that the President, Rex Geveden, recently sold a substantial US$4.5m worth of stock at a price of US$179 per share. That's a big disposal, and it decreased their holding size by 11%, which is notable but not too bad.

BWX Technologies Insider Transactions Over The Last Year

In fact, the recent sale by President Rex Geveden was not their only sale of BWX Technologies shares this year. They previously made an even bigger sale of -US$4.9m worth of shares at a price of US$108 per share. That means that an insider was selling shares at slightly below the current price (US$179). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 17% of Rex Geveden's holding.

In the last year BWX Technologies insiders didn't buy any company stock. 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 BWX Technologies better if I see some big insider buys.

Insider Ownership Of BWX Technologies

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. It appears that BWX Technologies insiders own 0.4% of the company, worth about US$59m. 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 BWX Technologies Insider Transactions Indicate?

Insiders sold BWX Technologies shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since BWX Technologies 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're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that BWX Technologies has 2 warning signs and it would be unwise to ignore these.

But note: BWX Technologies may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

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.