Insiders who purchased this year lose US$29k as Tronox Holdings plc (NYSE:TROX) stock drops to US$14.07
The recent price decline of 16% in Tronox Holdings plc's (NYSE:TROX) stock may have disappointed insiders who bought US$381k worth of shares at an average price of US$15.23 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$352k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Tronox Holdings
The Last 12 Months Of Insider Transactions At Tronox Holdings
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Vanessa Guthrie, sold US$192k worth of shares at a price of US$17.06 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$14.07. So it may not shed much light on insider confidence at current levels. Vanessa Guthrie was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$381k for 25.00k shares. On the other hand they divested 11.26k shares, for US$192k. Overall, Tronox Holdings insiders were net buyers during the last year. They paid about US$15.23 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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
Many investors like to check how much of a company is owned by 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. Insiders own 1.4% of Tronox Holdings shares, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Tronox Holdings Insiders?
It doesn't really mean much that no insider has traded Tronox Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Tronox Holdings and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 3 warning signs for Tronox Holdings you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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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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