Have Insiders Sold Tejon Ranch Shares Recently?

We note that the Tejon Ranch Co. (NYSE:TRC) Independent Director, Geoffrey Stack, recently sold US$95k worth of stock for US$15.77 per share. It wasn't a huge sale, but it did reduce their holding by 23%. This does not instill confidence.

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The Last 12 Months Of Insider Transactions At Tejon Ranch

In fact, the recent sale by Geoffrey Stack was the biggest sale of Tejon Ranch shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$15.82). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 23% of Geoffrey Stack's holding.

Geoffrey Stack sold a total of 10.34k shares over the year at an average price of US$15.94. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Tejon Ranch Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Tejon Ranch insiders own 7.8% of the company, worth about US$33m. 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 Do The Tejon Ranch Insider Transactions Indicate?

An insider sold Tejon Ranch shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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 Tejon Ranch is showing 2 warning signs in our investment analysis, and 1 of those is a bit concerning...

But note: Tejon Ranch 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 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.