We wouldn't blame Trimble Inc. (NASDAQ:TRMB) shareholders if they were a little worried about the fact that Sandra Macquillan, the Independent Director recently netted about US$698k selling shares at an average price of US$66.44. That diminished their holding by a very significant 62%, which arguably implies a strong desire to reallocate capital.
The Last 12 Months Of Insider Transactions At Trimble
Over the last year, we can see that the biggest insider sale was by the Executive Chairman of the Board, Steven Berglund, for US$15m worth of shares, at about US$93.65 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$68.59). So it is hard to draw any strong conclusion from it.
Insiders in Trimble didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Trimble insiders own about US$64m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Trimble Tell Us?
Insiders haven't bought Trimble stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Trimble is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Trimble. Every company has risks, and we've spotted 2 warning signs for Trimble you should know about.
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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.
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.