Techtronic Industries Insider Lowered Holding By 25% During Last Year

Insiders were net sellers of Techtronic Industries Company Limited's (HKG:669 ) stock during the past year. That is, insiders sold more stock than they bought.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Techtronic Industries

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Peter David Sullivan, for HK$9.9m worth of shares, at about HK$75.00 per share. That means that even when the share price was below the current price of HK$88.15, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 25% of Peter David Sullivan's holding. Peter David Sullivan was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 60.00k shares worth HK$5.0m. On the other hand they divested 132.00k shares, for HK$9.9m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Techtronic Industries

I will like Techtronic Industries 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.

Insiders At Techtronic Industries Have Sold Stock Recently

We've seen more insider selling than insider buying at Techtronic Industries recently. We note Independent Non-Executive Director Peter David Sullivan cashed in HK$9.9m worth of shares. On the flip side, Founder & Group Executive Chairman Horst Julius Pudwill spent HK$4.2m on purchasing shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Techtronic Industries insiders own 22% of the company, currently worth about HK$36b 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.

So What Does This Data Suggest About Techtronic Industries Insiders?

Unfortunately, there has been more insider selling of Techtronic Industries stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Techtronic Industries is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. At Simply Wall St, we found 1 warning sign for Techtronic Industries that deserve your attention before buying any shares.

But note: Techtronic Industries 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.

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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.