Insiders In Tupperware Brands Still Down 52% On US$1.10m Investment

Insiders who purchased US$1.10m worth of Tupperware Brands Corporation (NYSE:TUP) shares over the past year recouped some of their losses after price gained 17% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$573k since the time of purchase.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Tupperware Brands

Tupperware Brands Insider Transactions Over The Last Year

The insider Richard Goudis made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$3.93 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.90). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Tupperware Brands insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Tupperware Brands is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Tupperware Brands insiders own about US$9.0m worth of shares (which is 11% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Tupperware Brands Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Tupperware Brands shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Tupperware Brands stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tupperware Brands. Be aware that Tupperware Brands is showing 4 warning signs in our investment analysis, and 2 of those can't be ignored...

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.