We wouldn't blame Techtronic Industries Company Limited (HKG:669) shareholders if they were a little worried about the fact that Stephan Horst Pudwill, the Group Executive Vice Chairman recently netted about HK$37m selling shares at an average price of HK$99.31. However, that sale only accounted for 1.0% of their holding, so arguably it doesn't say much about their conviction.
Techtronic Industries Insider Transactions Over The Last Year
In fact, the recent sale by Stephan Horst Pudwill was the biggest sale of Techtronic Industries shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (HK$102). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 1.0% of Stephan Horst Pudwill's stake.
Over the last year, we can see that insiders have bought 495.00k shares worth HK$42m. But insiders sold 850.00k shares worth HK$85m. All up, insiders sold more shares in Techtronic Industries than they bought, over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Techtronic Industries insiders own 26% of the company, currently worth about HK$48b 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?
The stark truth for Techtronic Industries is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Techtronic Industries 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.