Stock Analysis

Favourable Signals For Triumph Group: Numerous Insiders Acquired Stock

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NYSE:TGI
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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Triumph Group, Inc. (NYSE:TGI), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Triumph Group

The Last 12 Months Of Insider Transactions At Triumph Group

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board Daniel Crowley bought US$111k worth of shares at a price of US$11.28 per share. So it's clear an insider wanted to buy, at around the current price, which is US$11.67. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Triumph Group insiders decided to buy shares at close to current prices.

In the last twelve months Triumph Group insiders were buying shares, but not selling. The average buy price was around US$9.92. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:TGI Insider Trading Volume December 5th 2023

Triumph Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Triumph Group Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Triumph Group. VP of Investor Relations Thomas Quigley shelled out US$21k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Triumph Group 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 Triumph Group insiders own 1.7% of the company, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Triumph Group Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Triumph Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Triumph Group. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Triumph Group.

Of course Triumph Group 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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