Tinybeans Group Limited (ASX:TNY) insiders made a handsome profit after selling stock presently valued at AU$0.24 apiece for US$0.29

Even though Tinybeans Group Limited (ASX:TNY) stock gained 20% last week, insiders who sold US$170k worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$0.29, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Tinybeans Group

The Last 12 Months Of Insider Transactions At Tinybeans Group

In the last twelve months, the biggest single sale by an insider was when the insider, Stephen O'Young, sold AU$145k worth of shares at a price of AU$0.41 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$0.24). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 120.00k shares for AU$27k. On the other hand they divested 582.03k shares, for AU$170k. Over the last year we saw more insider selling of Tinybeans Group shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insiders At Tinybeans Group Have Bought Stock Recently

We saw some Tinybeans Group insider buying shares in the last three months. Non-Executive Director Catherine Cohen bought AU$23k worth of shares in that time. We like it when there are only buyers, and no sellers. However, in this case the amount invested recently is quite small.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Tinybeans Group insiders own 43% of the company, worth about AU$6.3m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Tinybeans Group Insiders?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. Overall the buying isn't worth writing home about. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Tinybeans Group insider transactions don't fill us with confidence. 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. While conducting our analysis, we found that Tinybeans Group has 4 warning signs and it would be unwise to ignore them.

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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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.