Triumph Group, Inc. (NYSE:TGI) drops to US$24.06, yet insiders may have sold too early fetching only US$17.49 apiece

By
Simply Wall St
Published
April 12, 2022
NYSE:TGI
Source: Shutterstock

Triumph Group, Inc.'s (NYSE:TGI) value has fallen 7.9% in the last week, but insiders who sold US$434k worth of stock over the last year have had less success. Given that the average selling price of US$17.49 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Triumph Group

Triumph Group Insider Transactions Over The Last Year

The insider, Richard Goglia, made the biggest insider sale in the last 12 months. That single transaction was for US$434k worth of shares at a price of US$17.49 each. That means that an insider was selling shares at slightly below the current price (US$24.06). 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 100% of Richard Goglia's stake. The only individual insider seller over the last year was Richard Goglia.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:TGI Insider Trading Volume April 12th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.5% of Triumph Group shares, worth about US$23m. 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 Triumph Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by Triumph Group insiders. The modest level of insider ownership is, at least, some comfort. 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. Be aware that Triumph Group is showing 3 warning signs in our investment analysis, and 1 of those is potentially serious...

But note: Triumph Group 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, but not derivative transactions.

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