Independent Director Of Tutor Perini Sold 51% Of Their Shares

We wouldn't blame Tutor Perini Corporation (NYSE:TPC) shareholders if they were a little worried about the fact that Raymond Oneglia, the Independent Director recently netted about US$3.6m selling shares at an average price of US$36.21. That diminished their holding by a very significant 51%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At Tutor Perini

Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board, Ronald Tutor, for US$5.4m worth of shares, at about US$31.85 per share. That means that even when the share price was below the current price of US$36.73, an insider wanted to cash in some shares. 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. 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 only 2.4% of Ronald Tutor's holding.

In the last year Tutor Perini insiders didn't buy any company stock. 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!

View our latest analysis for Tutor Perini

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Insider Ownership Of Tutor Perini

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Tutor Perini insiders own about US$320m worth of shares (which is 17% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Tutor Perini Insider Transactions Indicate?

An insider sold Tutor Perini shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Tutor Perini.

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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.