Stock Analysis

The Independent Director of Trinseo S.A. (NYSE:TSE), Jeffrey Cote, Just Sold 46% Of Their Holding

  •  Updated
NYSE:TSE
Source: Shutterstock

Anyone interested in Trinseo S.A. (NYSE:TSE) should probably be aware that the Independent Director, Jeffrey Cote, recently divested US$329k worth of shares in the company, at an average price of US$65.82 each. The eyebrow raising move amounted to a reduction of 46% in their holding.

Check out our latest analysis for Trinseo

Trinseo Insider Transactions Over The Last Year

Notably, that recent sale by Jeffrey Cote is the biggest insider sale of Trinseo shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$64.71. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 39.93k shares for US$916k. On the other hand they divested 5.00k shares, for US$329k. In total, Trinseo insiders bought more than they sold over the last year. They paid about US$22.94 on average. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

insider-trading-volume
NYSE:TSE Insider Trading Volume February 28th 2021

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

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.1% of Trinseo shares, worth about US$26m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Trinseo Tell Us?

We can't make any useful conclusions about recent trading, since insider buying and selling has been balanced. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Trinseo insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Trinseo is showing 5 warning signs in our investment analysis, and 2 of those are potentially serious...

Of course Trinseo may not be the best stock to buy. So you may wish to see this free collection of high quality 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.

When trading Trinseo or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


What are the risks and opportunities for Trinseo?

Trinseo PLC, a materials solutions provider, manufactures and sells plastics and latex binders in the United States, Europe, the Asia-Pacific, and internationally.

View Full Analysis

Rewards

  • Trading at 71.1% below our estimate of its fair value

Risks

  • Earnings have declined by 19.7% per year over past 5 years

  • Interest payments are not well covered by earnings

  • Significant insider selling over the past 3 months

View all Risks and Rewards

Share Price

Market Cap

1Y Return

View Company Report