Insiders who purchased US$2.2m worth of Truist Financial Corporation (NYSE:TFC) shares over the past year recouped some of their losses after price gained 6.7% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$365k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Truist Financial Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Steven Voorhees for US$996k worth of shares, at about US$49.82 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$45.53). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 40.13k shares for US$2.2m. On the other hand they divested 3.78k shares, for US$255k. Overall, Truist Financial insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Truist Financial
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. Truist Financial insiders own about US$187m worth of shares (which is 0.3% of the company). 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 Truist Financial Insiders?
The fact that there have been no Truist Financial insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Truist Financial insiders feel good about the company's future. Of course, the future is what matters most. So if you are interested in Truist Financial, you should check out this free report on analyst forecasts for the company.
But note: Truist Financial 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.
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