This Insider Has Just Sold Shares In Teledyne Technologies

We wouldn't blame Teledyne Technologies Incorporated (NYSE:TDY) shareholders if they were a little worried about the fact that Michael Smith, the Lead Independent Director recently netted about US$2.5m selling shares at an average price of US$621. However, that sale only accounted for 7.9% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Teledyne Technologies

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Simon Lorne, sold US$3.5m worth of shares at a price of US$551 per share. That means that even when the share price was below the current price of US$620, an insider wanted to cash in some shares. 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. 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. We note that the biggest single sale was only 9.7% of Simon Lorne's holding.

Teledyne Technologies insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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 Teledyne Technologies

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Insider Ownership Of Teledyne Technologies

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. We usually like to see fairly high levels of insider ownership. It's great to see that Teledyne Technologies insiders own 0.9% of the company, worth about US$269m. 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 Teledyne Technologies Tell Us?

An insider sold Teledyne Technologies shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Teledyne Technologies is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Case in point: We've spotted 1 warning sign for Teledyne Technologies you should be aware of.

But note: Teledyne 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.

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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.