Insider Buys Additional US$9.3m In Techtronic Industries Stock

Those following along with Techtronic Industries Company Limited (HKG:669) will no doubt be intrigued by the recent purchase of shares by Horst Julius Pudwill, Founder & Group Executive Chairman of the company, who spent a stonking HK$9.3m on stock at an average price of HK$102. While that only increased their holding size by 0.03%, it is still a big swing by our standards.

Check out our latest analysis for Techtronic Industries

The Last 12 Months Of Insider Transactions At Techtronic Industries

The Group Executive Vice Chairman, Stephan Horst Pudwill, made the biggest insider sale in the last 12 months. That single transaction was for HK$37m worth of shares at a price of HK$99.31 each. So what is clear is that an insider saw fit to sell at around the current price of HK$98.60. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last twelve months insiders purchased 586.50k shares for HK$51m. But they sold 850.00k shares for HK$85m. Over the last year we saw more insider selling of Techtronic Industries shares, than buying. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Techtronic Industries

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. Techtronic Industries insiders own about HK$46b worth of shares (which is 25% of the company). 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 Techtronic Industries Tell Us?

The stark truth for Techtronic Industries is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Techtronic Industries you should know about.

Of course Techtronic Industries 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 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.