Trade Window Holdings Insiders Make Handsome Sum Selling Stock At NZ$0.17 Per Share

While it’s been a great week for Trade Window Holdings Limited (NZSE:TWL) shareholders after stock gained 11%, they should consider it with a grain of salt. Although prices were relatively low, insiders chose to sell NZ$661k worth of stock in the past 12 months. This could be a sign of impending weakness.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Trade Window Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Albertus Smith, sold NZ$328k worth of shares at a price of NZ$0.17 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of NZ$0.26. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 18% of Albertus Smith's stake.

Insiders in Trade Window Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Trade Window Holdings

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Does Trade Window Holdings 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. We usually like to see fairly high levels of insider ownership. It appears that Trade Window Holdings insiders own 24% of the company, worth about NZ$8.0m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Trade Window Holdings Insider Transactions Indicate?

The fact that there have been no Trade Window Holdings insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Trade Window Holdings insiders. The modest level of insider ownership is, at least, some comfort. 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. To that end, you should learn about the 4 warning signs we've spotted with Trade Window Holdings (including 1 which is potentially serious).

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 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.