Torrid Holdings Insiders Got A Good Deal Selling At US$2.07

While it’s been a great week for Torrid Holdings Inc. (NYSE:CURV) shareholders after stock gained 22%, company insiders might have missed out on those gains after selling stock earlier this year. They could have sold their shares at much higher prices and gotten a better return on their investment if they had waited.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Torrid Holdings

Over the last year, we can see that the biggest insider sale was by the Executive Vice President, Paula Dempsey, for US$88k worth of shares, at about US$2.06 per share. That means that an insider was selling shares at slightly below the current price (US$2.44). 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. We note that the biggest single sale was 72% of Paula Dempsey's holding.

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

View our latest analysis for Torrid Holdings

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Have Torrid Holdings Insiders Traded Recently?

In the last three months company Executive VP & Chief Commercial Officer Ashlee Wheeler divested US$4.4k worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that Torrid Holdings insiders own 5.6% of the company, worth about US$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Torrid Holdings Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. However, the sales are not big enough to concern us at all. We're a little cautious about the insider selling at Torrid Holdings. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Torrid Holdings. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Torrid Holdings.

Of course Torrid Holdings 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.

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