Insiders At Tidewater Sold US$71m In Stock, Alluding To Potential Weakness

In the last year, many Tidewater Inc. (NYSE:TDW) insiders sold a substantial stake in the company which may have sparked shareholders' attention. 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, if numerous insiders are selling, shareholders should investigate more.

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 Tidewater

The Last 12 Months Of Insider Transactions At Tidewater

Over the last year, we can see that the biggest insider sale was by the President, Quintin Kneen, for US$39m worth of shares, at about US$106 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$54.39. So it is hard to draw any strong conclusion from it. Notably Quintin Kneen was also the biggest buyer, having purchased US$3.0m worth of shares.

Happily, we note that in the last year insiders paid US$3.0m for 62.76k shares. On the other hand they divested 680.50k shares, for US$71m. In total, Tidewater insiders sold more than they bought over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At Tidewater Have Bought Stock Recently

It's good to see that Tidewater insiders have made notable investments in the company's shares. Overall, two insiders shelled out US$3.0m for shares in the company -- and none sold. That shows some optimism about the company's future.

Insider Ownership Of Tidewater

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Tidewater insiders own 1.3% of the company, worth about US$37m. 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 Do The Tidewater Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Tidewater insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. Of course, the future is what matters most. So if you are interested in Tidewater, 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.