Trinseo PLC (NYSE:TSE) insiders who sold US$880k worth of stock earlier this year are probably glad they did so as market cap slides to US$1.7b

By
Simply Wall St
Published
May 07, 2022
NYSE:TSE
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling US$880k worth of Trinseo PLC (NYSE:TSE) stock at an average sell price of US$64.46 during the past year. After the stock price dropped 3.4% last week, the company's market value declined by US$59m, but insiders were able to mitigate their losses.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Trinseo

Trinseo Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Pierre-Marie De Leener, sold US$607k worth of shares at a price of US$65.00 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 silver lining is that this sell-down took place above the latest price (US$45.84). So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 6.00k shares for US$290k. On the other hand they divested 13.65k shares, for US$880k. All up, insiders sold more shares in Trinseo than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:TSE Insider Trading Volume May 7th 2022

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).

Insiders at Trinseo Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Trinseo. Independent Director Joseph Alvarado purchased US$47k worth of shares in that period. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Trinseo insiders own 0.8% of the company, worth about US$13m. 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?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. We don't take much encouragement from the transactions by Trinseo insiders. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for Trinseo (2 are potentially serious) you should be aware of.

But note: Trinseo may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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