TMT Investments Insiders Got A Good Deal Selling At US$2.62
While TMT Investments PLC (LON:TMT) shareholders have had a good week with the stock up 13%, insiders can't say the same having sold stock over the past year. The return on their investment would have been much higher had they held on to their stock.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At TMT Investments
The Head of Strategy & Director for Strategic Development, German Kaplun, made the biggest insider sale in the last 12 months. That single transaction was for US$131k worth of shares at a price of US$2.62 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$3.50. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 0.7% of German Kaplun's holding. German Kaplun was the only individual insider to sell shares in the last twelve months.
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!
See our latest analysis for TMT Investments
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. TMT Investments insiders own about US$56m worth of shares (which is 53% of the company). 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 TMT Investments Tell Us?
The fact that there have been no TMT Investments insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of TMT Investments, we can't say the same about the selling of shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for TMT Investments (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.
Of course TMT Investments 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.