Co-Founder Mark Coulter Sold A Bunch Of Shares In Temple & Webster Group

Some Temple & Webster Group Ltd (ASX:TPW) shareholders may be a little concerned to see that the Co-Founder, Mark Coulter, recently sold a substantial AU$7.8m worth of stock at a price of AU$12.20 per share. That diminished their holding by a very significant 93%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Temple & Webster Group

Temple & Webster Group Insider Transactions Over The Last Year

Notably, that recent sale by Mark Coulter is the biggest insider sale of Temple & Webster Group shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (AU$12.60). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was 93% of Mark Coulter's holding.

In the last twelve months insiders purchased 1.26m shares for AU$4.5m. But they sold 670.79k shares for AU$8.2m. All up, insiders sold more shares in Temple & Webster Group than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Temple & Webster Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Temple & Webster Group insiders own 13% of the company, worth about AU$192m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Temple & Webster Group Tell Us?

Insiders haven't bought Temple & Webster Group stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Temple & Webster Group makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Temple & Webster Group.

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.