Yahoo Finance TransDigm Group Incorporated (NYSE:TDG) insiders who sold US$3.4m worth of stock earlier this year are probably glad they did so as market cap slides to US$36b
Over the past year, insiders sold US$3.4m worth of TransDigm Group Incorporated (NYSE:TDG) stock at an average price of US$670 per share allowing them to get the most out of their money. After the stock price dropped 3.5% last week, the company's market value declined by US$1.3b, but insiders were able to mitigate their losses.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for TransDigm Group
TransDigm Group Insider Transactions Over The Last Year
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 around the current price of US$660. 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). Raymond Laubenthal was the only individual insider to sell 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!
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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that TransDigm Group insiders own 0.9% of the company, worth about US$308m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At TransDigm Group Tell Us?
There haven't been any insider transactions in the last three months -- that doesn't mean much. While we feel good about high insider ownership of TransDigm Group, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TransDigm Group. You'd be interested to know, that we found 2 warning signs for TransDigm Group and we suggest you have a look.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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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