Insiders are probably glad they sold their shares in Tymlez Group Limited (ASX:TYM) after 11% drop

By
Simply Wall St
Published
May 14, 2022
ASX:TYM
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling AU$552k worth of Tymlez Group Limited (ASX:TYM) stock at an average sell price of AU$0.04 during the past year. The company’s market cap plunged by AU$3.0m after price dropped by 11% last week but insiders were able to limit their loss to an extent.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Tymlez Group

Tymlez Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Peter Whitcombe, for AU$552k worth of shares, at about AU$0.04 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (AU$0.025). So it may not tell us anything about how insiders feel about the current share price. Peter Whitcombe was the only individual insider to sell shares in the last twelve months. Notably Peter Whitcombe was also the biggest buyer, having purchased AU$190k worth of shares.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
ASX:TYM Insider Trading Volume May 13th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Tymlez Group Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Tymlez Group. In total, insider Peter Whitcombe dumped AU$552k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 17% of Tymlez Group shares, worth about AU$4.1m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Tymlez Group Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for Tymlez Group (of which 3 are a bit unpleasant!) you should know about.

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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