Tyro Payments Limited's (ASX:TYR)) market cap declines to AU$481m but insiders who sold AU$16m stock were able to hedge their losses

Insiders at Tyro Payments Limited (ASX:TYR) sold AU$16m worth of stock at an average price of AU$3.92 a share over the past year, making the most of their investment. The company's market valuation decreased by AU$67m after the stock price dropped 12% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Tyro Payments

The Last 12 Months Of Insider Transactions At Tyro Payments

The Non-Executive Non-Independent Director, David Fite, made the biggest insider sale in the last 12 months. That single transaction was for AU$8.2m worth of shares at a price of AU$4.10 each. 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$0.93). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was David Fite.

In the last twelve months insiders purchased 217.15k shares for AU$325k. On the other hand they divested 4.17m shares, for AU$16m. David Fite ditched 4.17m shares over the year. The average price per share was AU$3.92. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Tyro Payments 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Tyro Payments insiders own 30% of the company, currently worth about AU$145m 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?

The fact that there have been no Tyro Payments insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Tyro Payments 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Tyro Payments.

Of course Tyro Payments may not be the best stock to buy. So you may wish to see this free collection of high quality 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.