Insiders At Tri Pointe Homes Sold US$2.4m In Stock, Alluding To Potential Weakness

In the last year, many Tri Pointe Homes, Inc. (NYSE:TPH) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Tri Pointe Homes

The Last 12 Months Of Insider Transactions At Tri Pointe Homes

In the last twelve months, the biggest single sale by an insider was when the Non-Employee Independent Director, Constance Moore, sold US$916k worth of shares at a price of US$23.15 per share. That means that an insider was selling shares at slightly below the current price (US$34.77). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 43% of Constance Moore's stake.

Insiders in Tri Pointe Homes didn't buy any shares in the last year. 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!

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

Does Tri Pointe Homes Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Tri Pointe Homes insiders own 1.8% of the company, worth about US$62m. 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 Tri Pointe Homes Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Tri Pointe Homes 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 Tri Pointe Homes, you should check out this free report on analyst forecasts for the company.

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.