Yahoo Finance 2.4%of this TransDigm Group Incorporated (NYSE:TDG) insider's holdings were sold in the last year
Insiders were net sellers of TransDigm Group Incorporated's (NYSE:TDG ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for TransDigm Group
The Last 12 Months Of Insider Transactions At TransDigm Group
In the last twelve months, the biggest single sale by an insider was when the insider, Raymond Laubenthal, sold US$3.4m worth of shares at a price of US$670 per share. That means that an insider was selling shares at slightly below the current price (US$742). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.4% of Raymond Laubenthal's holding. Raymond Laubenthal was the only individual insider to sell shares in the last twelve months.
You can see the insider transactions (by companies and 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!
I will like TransDigm Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does TransDigm Group 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. TransDigm Group insiders own 0.5% of the company, currently worth about US$197m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At TransDigm Group Tell Us?
The fact that there have been no TransDigm Group insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of TransDigm Group, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of TransDigm Group.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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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.
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