Have T. Rowe Price Group Insiders Been Selling Stock?
We wouldn't blame T. Rowe Price Group, Inc. (NASDAQ:TROW) shareholders if they were a little worried about the fact that Joshua Nelson, a company insider, recently netted about US$1.1m selling shares at an average price of US$112. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.
T. Rowe Price Group Insider Transactions Over The Last Year
In fact, the recent sale by Joshua Nelson was the biggest sale of T. Rowe Price Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$113, an insider wanted to cash in some shares. 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. This single sale was just 22% of Joshua Nelson's stake.
T. Rowe Price Group insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for T. Rowe Price Group
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Insider Ownership Of T. Rowe Price Group
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. T. Rowe Price Group insiders own about US$449m worth of shares (which is 1.9% of the company). 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 T. Rowe Price Group Tell Us?
An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, T. Rowe Price Group makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. Of course, the future is what matters most. So if you are interested in T. Rowe Price Group, you should check out this free report on analyst forecasts for the company.
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 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.