Insiders who purchased TDH Holdings, Inc. (NASDAQ:PETZ) shares in the past 12 months are unlikely to be deeply impacted by the stock's 12% decline over the past week. Even after accounting for the recent loss, the US$2.2m worth of stock purchased by them is now worth US$13m or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At TDH Holdings
Over the last year, we can see that the biggest insider purchase was by insider Yi Zou for US$960k worth of shares, at about US$0.30 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.79. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While TDH Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of TDH Holdings
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. TDH Holdings insiders own 75% of the company, currently worth about US$80m 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 TDH Holdings Tell Us?
The fact that there have been no TDH Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. It would be great to see more insider buying, but overall it seems like TDH Holdings insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for TDH Holdings you should be aware of, and 3 of these don't sit too well with us.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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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.
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