Titan Machinery Chairman of the Board & Co-Founder Acquires 1.3% More Stock

Investors who take an interest in Titan Machinery Inc. (NASDAQ:TITN) should definitely note that the Chairman of the Board & Co-Founder, David Meyer, recently paid US$16.83 per share to buy US$430k worth of the stock. Although the purchase only increased their holding by 1.3%, it is still a solid purchase in our view.

The Last 12 Months Of Insider Transactions At Titan Machinery

In fact, the recent purchase by Chairman of the Board & Co-Founder David Meyer was not their only acquisition of Titan Machinery shares this year. Earlier in the year, they paid US$18.12 per share in a US$997k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$17.98). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Titan Machinery insiders may have bought shares in the last year, but they didn't sell any. 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!

See our latest analysis for Titan Machinery

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Titan Machinery Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 11% of Titan Machinery shares, worth about US$44m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Titan Machinery Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Titan Machinery insiders are well aligned, and that they may think the share price is too low. 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. For example - Titan Machinery has 1 warning sign we think you should be aware of.

But note: Titan Machinery may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.