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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Techtronic Industries Company Limited (HKG:669).
Do Insider Transactions Matter?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.
Check out our latest analysis for Techtronic Industries
Techtronic Industries Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Vice Chairman, Stephan Pudwill, sold HK$17m worth of shares at a price of HK$57.30 per share. That means that an insider was selling shares at around the current price of HK$50.50. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last twelve months insiders purchased 159k shares for HK$6.2m. But they sold 350k for HK$19m. Over the last year we saw more insider selling of Techtronic Industries shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Techtronic Industries Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Techtronic Industries. In total, Stephan Pudwill dumped US$17m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.