We note that the Townsquare Media, Inc. (NYSE:TSQ) Executive Vice President of Finance, Scott Schatz, recently sold US$50k worth of stock for US$9.76 per share. It might not be a huge sale, but it did reduce their holding size 11%, hardly encouraging.

The Last 12 Months Of Insider Transactions At Townsquare Media

The Independent Director Stephen Kaplan made the biggest insider purchase in the last 12 months. That single transaction was for US$521k worth of shares at a price of US$10.41 each. That means that an insider was happy to buy shares at above the current price of US$9.72. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Stephen Kaplan was the only individual insider to buy shares in the last twelve months.

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!

Townsquare Media is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Townsquare Media Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 13% of Townsquare Media shares, worth about US$20m. 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 Townsquare Media Insiders?

An insider hasn't bought Townsquare Media stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. It's good to see insiders are shareholders. So we're happy enough to look past some selling. 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. Every company has risks, and we've spotted 3 warning signs for Townsquare Media (of which 1 can't be ignored!) you should know about.

But note: Townsquare Media may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.