Trade Alert: Independent Director Of TTM Technologies John Mayer Has Sold Stock

We wouldn't blame TTM Technologies, Inc. (NASDAQ:TTMI) shareholders if they were a little worried about the fact that John Mayer, the Independent Director recently netted about US$625k selling shares at an average price of US$68.13. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

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TTM Technologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Executive VP and President of Aerospace & Defense (A&D) Sector, Catherine Gridley, for US$1.0m worth of shares, at about US$40.46 per share. That means that even when the share price was below the current price of US$64.27, 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. This single sale was just 32% of Catherine Gridley's stake.

All up, insiders sold more shares in TTM Technologies than they bought, over the last year. 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!

See our latest analysis for TTM Technologies

I will like TTM Technologies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of TTM Technologies

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. It's great to see that TTM Technologies insiders own 1.7% of the company, worth about US$109m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At TTM Technologies Tell Us?

Insiders sold TTM Technologies shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since TTM Technologies is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that TTM Technologies has 1 warning sign and it would be unwise to ignore this.

But note: TTM Technologies 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.