More money in the bank for insiders who divested US$752k worth of Tennant Company (NYSE:TNC) shares last year

By
Simply Wall St
Published
February 18, 2022
NYSE:TNC
Source: Shutterstock

Despite the fact that Tennant Company (NYSE:TNC) stock rose 4.5% last week, insiders who sold US$752k worth of stock in the previous 12 months are likely to be better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$85.71, which is higher than the current price, may have been the best decision.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Tennant

The Last 12 Months Of Insider Transactions At Tennant

The President, David Huml, made the biggest insider sale in the last 12 months. That single transaction was for US$431k worth of shares at a price of US$86.62 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$77.89). So it may not tell us anything about how insiders feel about the current share price.

Tennant insiders didn't buy any shares over 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!

insider-trading-volume
NYSE:TNC Insider Trading Volume February 18th 2022

I will like Tennant better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Tennant insiders own 1.8% of the company, worth about US$26m. 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 Tennant Insiders?

It doesn't really mean much that no insider has traded Tennant shares in the last quarter. Our analysis of Tennant insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in Tennant, you should check out this free report on analyst forecasts for the company.

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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