Potential TriMas Corporation (NASDAQ:TRS) shareholders may wish to note that the Independent Chairman of the Board, Herbert Parker, recently bought US$304k worth of stock, paying US$20.81 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 29%.
See our latest analysis for TriMas
The Last 12 Months Of Insider Transactions At TriMas
Over the last year, we can see that the biggest insider purchase was by insider Shawn Sedaghat for US$84m worth of shares, at about US$27.73 per share. That means that an insider was happy to buy shares at above the current price of US$21.89. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 3.32m shares worth US$86m. But insiders sold 7.50k shares worth US$197k. In the last twelve months there was more buying than selling by TriMas insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
TriMas is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does TriMas Boast High 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 TriMas insiders own 17% of the company, worth about US$146m. 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 TriMas Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest TriMas insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for TriMas (of which 1 is significant!) you should know about.
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 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.
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