Some Tidewater Inc. (NYSE:TDW) shareholders may be a little concerned to see that the President, Quintin Kneen, recently sold a substantial US$39m worth of stock at a price of US$105 per share. That diminished their holding by a very significant 87%, which arguably implies a strong desire to reallocate capital.
Tidewater Insider Transactions Over The Last Year
Notably, that recent sale by Quintin Kneen is the biggest insider sale of Tidewater shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$96.99. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. 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 1.14k shares for US$65k. But insiders sold 721.78k shares worth US$74m. In total, Tidewater insiders sold more than they bought 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!
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Tidewater Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Tidewater insiders own 1.9% of the company, worth about US$97m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Tidewater Insiders?
Insiders haven't bought Tidewater stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. But since Tidewater is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tidewater. Case in point: We've spotted 3 warning signs for Tidewater you should be aware of.
Of course Tidewater 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com