We wouldn’t blame Tutor Perini Corporation (NYSE:TPC) shareholders if they were a little worried about the fact that Ronald Tutor, the Chairman & CEO recently netted about US$750k selling shares at an average price of US$12.50. However, that sale only accounted for 0.7% of their holding, so arguably it doesn’t say much about their conviction.
Check out our latest analysis for Tutor Perini
Tutor Perini Insider Transactions Over The Last Year
The Lead Independent Director & Vice Chairman of the Board Michael Klein made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$7.76 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$12.66. Because it occurred at a lower valuation, it doesn’t tell us much about whether insiders might find today’s price attractive.
Happily, we note that in the last year insiders paid US$2.2m for 257.92k shares. On the other hand they divested 165.00k shares, for US$2.1m. In the last twelve months there was more buying than selling by Tutor Perini insiders. Their average price was about US$8.57. We don’t deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today’s share price. 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!
Tutor Perini is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Tutor Perini Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tutor Perini insiders own 20% of the company, currently worth about US$127m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Tutor Perini Insider Transactions Indicate?
The stark truth for Tutor Perini is that there has been more insider selling than insider buying in the last three months. But we take heart from prior transactions. We are also comforted by the high levels of insider ownership. So we’re happy to look past recent trading. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Tutor Perini is showing 2 warning signs in our investment analysis, and 1 of those is significant…
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, but not derivative transactions.
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