Don’t Ignore The Fact That This Insider Just Sold Some Shares In Tempur Sealy International, Inc. (NYSE:TPX)

Some Tempur Sealy International, Inc. (NYSE:TPX) shareholders may be a little concerned to see that the Independent Director, Arik Ruchim, recently sold a whopping US$102m worth of stock at a price of US$92.55 per share. That’s a big dump, and it decreased their holding size by 23%, which is notable but not too bad.

Check out our latest analysis for Tempur Sealy International

Tempur Sealy International Insider Transactions Over The Last Year

Notably, that recent sale by Arik Ruchim is the biggest insider sale of Tempur Sealy International shares that we’ve seen in the last year. That means that an insider was selling shares at below the current price (US$94.35). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can’t be sure if it does mean insiders think the shares are fully valued, so it’s only a weak sign. It is worth noting that this sale was only 23% of Arik Ruchim’s holding.

Insiders in Tempur Sealy International didn’t buy any shares in the last year. The chart below shows insider transactions (by 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!

NYSE:TPX Recent Insider Trading, February 20th 2020
NYSE:TPX Recent Insider Trading, February 20th 2020

I will like Tempur Sealy International 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Tempur Sealy International insiders own about US$72m worth of shares. That equates to 1.4% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Tempur Sealy International Tell Us?

Insiders sold stock recently, but they haven’t been buying. Looking to the last twelve months, our data doesn’t show any insider buying. But since Tempur Sealy International is profitable and growing, we’re not too worried by this. While insiders do own shares, they don’t own a heap, and they have been selling. We’d think twice before buying! Of course, the future is what matters most. So if you are interested in Tempur Sealy International, you should check out this free report on analyst forecasts for the company.

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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