Have Trade Window Holdings Insiders Been Selling Stock?

Anyone interested in Trade Window Holdings Limited (NZSE:TWL) should probably be aware that the Founder, Albertus Smith, recently divested NZ$328k worth of shares in the company, at an average price of NZ$0.18 each. The eyebrow raising move amounted to a reduction of 18% in their holding.

See our latest analysis for Trade Window Holdings

Trade Window Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Albertus Smith is the biggest insider sale of Trade Window Holdings shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (NZ$0.20). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Albertus Smith's holding.

In total, Trade Window Holdings insiders sold more 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. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Trade Window Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Trade Window Holdings insiders own 20% of the company, worth about NZ$5.1m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Trade Window Holdings Insider Transactions Indicate?

Insiders haven't bought Trade Window Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While it's good to be aware of 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. Case in point: We've spotted 7 warning signs for Trade Window Holdings you should be aware of, and 3 of these are a bit concerning.

Of course Trade Window Holdings 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.