This Tempur Sealy International Insider Reduced Their Stake By 30%

From what we can see, insiders were net sellers in Tempur Sealy International, Inc.'s (NYSE:TPX ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Tempur Sealy International

Tempur Sealy International Insider Transactions Over The Last Year

The Executive Vice President of International, Hansbart Wijnand, made the biggest insider sale in the last 12 months. That single transaction was for US$599k worth of shares at a price of US$50.31 each. That means that even when the share price was below the current price of US$54.06, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 30% of Hansbart Wijnand's holding. Hansbart Wijnand was the only individual insider to sell over the last year.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. Tempur Sealy International insiders own 3.3% of the company, currently worth about US$308m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Tempur Sealy International Tell Us?

It doesn't really mean much that no insider has traded Tempur Sealy International shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Tempur Sealy International insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tempur Sealy International. In terms of investment risks, we've identified 1 warning sign with Tempur Sealy International and understanding this should be part of your investment process.

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.