Have Trinity Industries Insiders Been Selling Stock?

Some Trinity Industries, Inc. (NYSE:TRN) shareholders may be a little concerned to see that the Executive VP of Leasing & Services, Gregory Mitchell, recently sold a substantial US$762k worth of stock at a price of US$37.15 per share. That sale reduced their total holding by 14% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Trinity Industries

Trinity Industries Insider Transactions Over The Last Year

In fact, the recent sale by Gregory Mitchell was the biggest sale of Trinity Industries shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$37.05. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In the last year Trinity Industries 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Trinity Industries insiders own about US$47m worth of shares. That equates to 1.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Trinity Industries Insider Transactions Indicate?

An insider hasn't bought Trinity Industries stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But since Trinity Industries is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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 help with this, we've discovered 4 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Trinity Industries.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.