Even if it's not a huge purchase, we think it was good to see that Kenneth Traub, the Director of Tidewater Inc. (NYSE:TDW) recently shelled out US$88k to buy stock, at US$17.67 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 34.3%.
Tidewater Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Chairman of the Board Thomas Bates for US$231k worth of shares, at about US$23.11 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$16.87). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Happily, we note that in the last year insiders paid US$949k for 41556 shares. But insiders sold 3876 shares worth US$90k. Overall, Tidewater insiders were net buyers last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Tidewater is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.4% of Tidewater shares, worth about US$9.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Tidewater Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Tidewater insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Tidewater, you should check out this free report on analyst forecasts for the company.
Of course Tidewater 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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