Insiders At Trio-Tech International Sold US$2.4m Of Stock Potentially Indicating Weakness
Even though Trio-Tech International (NASDAQ:TRT) stock gained 12% last week, insiders who sold US$2.4m worth of stock over the past year are probably better off. Selling at an average price of US$12.56, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.
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.
The Last 12 Months Of Insider Transactions At Trio-Tech International
The Independent Director, Richard Horowitz, made the biggest insider sale in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$18.10 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$11.23. So it is hard to draw any strong conclusion from it.
Trio-Tech International 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. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for Trio-Tech International
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At Trio-Tech International Have Sold Stock Recently
The last three months saw significant insider selling at Trio-Tech International. Specifically, Independent Director Jason Adelman ditched US$74k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Trio-Tech International insiders own about US$34m worth of shares. That equates to 34% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Trio-Tech International Tell Us?
An insider hasn't bought Trio-Tech International stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Trio-Tech International is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. For instance, we've identified 4 warning signs for Trio-Tech International (1 makes us a bit uncomfortable) you should be aware of.
Of course Trio-Tech International 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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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.