TPI Composites, Inc. (NASDAQ:TPIC) Insiders Have Been Selling

By
Simply Wall St
Published
June 03, 2021
NasdaqGM:TPIC
Source: Shutterstock

We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in TPI Composites, Inc. (NASDAQ:TPIC).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for TPI Composites

TPI Composites Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Senior Vice President of Operations - Strategic Markets., Thomas Castle, for US$77k worth of shares, at about US$30.05 per share. That means that an insider was selling shares at slightly below the current price (US$46.32). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Thomas Castle's holding. The only individual insider seller over the last year was Thomas Castle.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGM:TPIC Insider Trading Volume June 3rd 2021

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Does TPI Composites 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. It appears that TPI Composites insiders own 2.3% of the company, worth about US$38m. 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 Does This Data Suggest About TPI Composites Insiders?

The fact that there have been no TPI Composites insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by TPI Composites insiders. But it's good to see that insiders own shares in the company. 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. For example - TPI Composites has 2 warning signs we think you should be aware of.

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, but not derivative transactions.

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