Did Tinybeans Group Limited (ASX:TNY) Insiders Sell Shares?

It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Tinybeans Group Limited (ASX:TNY), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Tinybeans Group

Tinybeans Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Stephen O'Young, sold AU$2.7m worth of shares at a price of AU$2.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (AU$1.54). So it may not shed much light on insider confidence at current levels.

Happily, we note that in the last year insiders paid AU$4.6m for 2.49m shares. On the other hand they divested 4.64m shares, for AU$8.2m. Over the last year we saw more insider selling of Tinybeans Group shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Tinybeans Group better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Tinybeans Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Tinybeans Group. Founder Edward Geller bought AU$36k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Tinybeans Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Tinybeans Group insiders own 49% of the company, currently worth about AU$35m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Tinybeans Group Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. It's great to see high levels of insider ownership, but looking back over the last year, we'd need to see more buying to gain confidence from the Tinybeans Group insider transactions. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tinybeans Group. At Simply Wall St, we've found that Tinybeans Group has 4 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

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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This article by Simply Wall St is general in nature. 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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