Potential Trex Company, Inc. (NYSE:TREX) shareholders may wish to note that the Senior VP & CFO, Prithvi Gandhi, recently bought US$479k worth of stock, paying US$31.92 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 96%, potentially signalling some real optimism.
Trex Company Insider Transactions Over The Last Year
Notably, that recent purchase by Prithvi Gandhi is the biggest insider purchase of Trex Company shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$31.03). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 15.23k shares for US$490k. But insiders sold 9.73k shares worth US$628k. Over the last year we saw more insider selling of Trex Company shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Trex Company
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 0.5% of Trex Company shares, worth about US$17m. 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 Does This Data Suggest About Trex Company Insiders?
It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The more recent transactions are a positive, but Trex Company insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trex Company. You'd be interested to know, that we found 1 warning sign for Trex Company and we suggest you have a look.
Of course Trex Company 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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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.