Stock Analysis

Have Tronox Holdings plc (NYSE:TROX) Insiders Been Selling Their Stock?

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Some Tronox Holdings plc (NYSE:TROX) shareholders may be a little concerned to see that the Co-CEO & Director, Jean-Francois Turgeon, recently sold a substantial US$1.5m worth of stock at a price of US$15.51 per share. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

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Tronox Holdings Insider Transactions Over The Last Year

Notably, that recent sale by Jean-Francois Turgeon is the biggest insider sale of Tronox Holdings shares that we've seen in the last year. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$12.93. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 25.00k shares for US$381k. But insiders sold 327.00k shares worth US$5.1m. Over the last year we saw more insider selling of Tronox Holdings shares, than buying. The sellers received a price of around US$15.57, on average. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of US$12.93. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NYSE:TROX Insider Trading Volume March 16th 2023

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

Insider Ownership Of Tronox 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. Insiders own 1.4% of Tronox Holdings shares, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Tronox Holdings Insiders?

Insiders haven't bought Tronox Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Tronox Holdings makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tronox Holdings. For example - Tronox Holdings has 4 warning signs we think you should be aware of.

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, but not derivative transactions.

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