Taylor Morrison Home Insiders Sell US$2.4m Of Stock, Possibly Signalling Caution

The fact that multiple Taylor Morrison Home Corporation (NYSE:TMHC) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

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.

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The Last 12 Months Of Insider Transactions At Taylor Morrison Home

The Executive VP, Darrell Sherman, made the biggest insider sale in the last 12 months. That single transaction was for US$1.9m worth of shares at a price of US$70.01 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$59.98. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Taylor Morrison Home didn't buy any shares in the last year. 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!

View our latest analysis for Taylor Morrison Home

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Insiders At Taylor Morrison Home Have Sold Stock Recently

The last quarter saw substantial insider selling of Taylor Morrison Home shares. In total, insiders dumped US$247k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Taylor Morrison Home

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. It's great to see that Taylor Morrison Home insiders own 2.6% of the company, worth about US$161m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Taylor Morrison Home Insider Transactions Indicate?

Insiders haven't bought Taylor Morrison Home stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But since Taylor Morrison Home is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Taylor Morrison Home.

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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.