Don't Ignore The Fact That This Insider Just Sold Some Shares In Tyro Payments Limited (ASX:TYR)

By
Simply Wall St
Published
August 27, 2020
ASX:TYR

We wouldn't blame Tyro Payments Limited (ASX:TYR) shareholders if they were a little worried about the fact that Danita Lowes, a company insider, recently netted about AU$19m selling shares at an average price of AU$3.15. That's a big disposal, and it decreased their holding size by 22%, which is notable but not too bad.

Check out our latest analysis for Tyro Payments

The Last 12 Months Of Insider Transactions At Tyro Payments

Notably, that recent sale by Danita Lowes is the biggest insider sale of Tyro Payments shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$3.40. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 22%of Danita Lowes's holding.

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:TYR Insider Trading Volume August 28th 2020

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Tyro Payments insiders own 36% of the company, currently worth about AU$605m 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 Does This Data Suggest About Tyro Payments Insiders?

An insider sold Tyro Payments shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tyro Payments. Every company has risks, and we've spotted 2 warning signs for Tyro Payments 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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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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