Don't Ignore The Insider Selling In TD SYNNEX

We wouldn't blame TD SYNNEX Corporation (NYSE:SNX) shareholders if they were a little worried about the fact that Patrick Zammit, the CEO, President & Director recently netted about US$976k selling shares at an average price of US$143. However, that sale only accounted for 5.0% of their holding, so arguably it doesn't say much about their conviction.

Check out our latest analysis for TD SYNNEX

TD SYNNEX Insider Transactions Over The Last Year

The Chief Legal Officer & Corporate Secretary, David Vetter, made the biggest insider sale in the last 12 months. That single transaction was for US$2.5m worth of shares at a price of US$123 each. That means that an insider was selling shares at slightly below the current price (US$140). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 23% of David Vetter's holding.

In the last year TD SYNNEX insiders didn't buy any company stock. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does TD SYNNEX Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. TD SYNNEX insiders own 1.4% of the company, currently worth about US$160m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About TD SYNNEX Insiders?

Insiders sold TD SYNNEX shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since TD SYNNEX is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. In terms of investment risks, we've identified 1 warning sign with TD SYNNEX and understanding it should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.