Don't Ignore The Fact That This Insider Just Sold Some Shares In TTM Technologies, Inc. (NASDAQ:TTMI)

By
Simply Wall St
Published
November 24, 2020
NasdaqGS:TTMI

Investors may wish to note that the Senior Vice President of Global Sales & E-MS of TTM Technologies, Inc., William Hardwick, recently netted US$52k from selling stock, receiving an average price of US$12.95. On the bright side, that's just a small sale and only reduced their holding by 7.0%.

View our latest analysis for TTM Technologies

TTM Technologies Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Executive Vice President of Asia Pacific Business Development, Tai Chung, sold US$491k worth of shares at a price of US$11.94 per share. That means that even when the share price was below the current price of US$12.87, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. We note that the biggest single sale was 100% of Tai Chung's holding.

Insiders in TTM Technologies 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!

insider-trading-volume
NasdaqGS:TTMI Insider Trading Volume November 23rd 2020

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 TTM Technologies

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that TTM Technologies insiders own 1.2% of the company, worth about US$16m. 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 TTM Technologies Insiders?

Insiders haven't bought TTM Technologies stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. 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. Case in point: We've spotted 3 warning signs for TTM Technologies you should be aware of, and 2 of them are a bit concerning.

Of course TTM Technologies 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.

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This article by Simply Wall St is general in nature. 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.
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