CEO, President & Director of Container Store Group Satish Malhotra Buys 4.2% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the The Container Store Group, Inc. (NYSE:TCS) CEO, President & Director, Satish Malhotra, recently bought US$76k worth of stock, for US$2.61 per share. Although the purchase is not a big one, increasing their shareholding by only 4.2%, it can be interpreted as a good sign.
View our latest analysis for Container Store Group
The Last 12 Months Of Insider Transactions At Container Store Group
Notably, that recent purchase by Satish Malhotra is the biggest insider purchase of Container Store Group shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$2.61. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Container Store Group insiders decided to buy shares at close to current prices.
In the last twelve months Container Store Group insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Container Store Group
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. Our data indicates that Container Store Group insiders own about US$5.6m worth of shares (which is 4.2% of the company). Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Container Store Group Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Container Store Group insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Container Store Group (1 shouldn't be ignored!) that we believe deserve your full attention.
But note: Container Store Group 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, but not derivative transactions.
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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.
