We wouldn't blame Preformed Line Products Company (NASDAQ:PLPC) shareholders if they were a little worried about the fact that Glenn Corlett, the Independent Director recently netted about US$914k selling shares at an average price of US$457. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

Preformed Line Products Insider Transactions Over The Last Year

Notably, that recent sale by Glenn Corlett is the biggest insider sale of Preformed Line Products shares that we've seen in the last year. That means that even when the share price was below the current price of US$467, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 26% of Glenn Corlett's holding.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Preformed Line Products insiders own 48% of the company, currently worth about US$1.1b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Preformed Line Products Tell Us?

An insider hasn't bought Preformed Line Products stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Preformed Line Products makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing.

Of course Preformed Line Products may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

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.