How Many Insiders Sold Turning Point Brands, Inc. (NYSE:TPB) Shares?
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It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Turning Point Brands, Inc. (NYSE:TPB), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Turning Point Brands
Turning Point Brands Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Non-Executive Chairman Thomas Helms sold US$1.4m worth of shares at a price of US$28.16 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$38.76. While sellers have a variety of reasons for selling, this isn’t particularly great to see. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. We note that the biggest single sale was only 10.2% of Thomas Helms’s holding.
All up, insiders sold more shares in Turning Point Brands than they bought, over the last year. They sold for an average price of about US$32.47. It’s not too encouraging to see that insiders have sold at below the current price. Since insiders sell for many reasons, we wouldn’t put too much weight on it. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Turning Point Brands Insiders Bought Stock Recently
It’s good to see that Turning Point Brands insiders have made notable investments in the company’s shares. We can see that Robert Lavan paid US$105k for shares in the company. No-one sold. That shows some optimism about the company’s future.
Insider Ownership of Turning Point Brands
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Turning Point Brands insiders own about US$35m worth of shares. That equates to 4.6% of the company. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Turning Point Brands Tell Us?
It’s certainly positive to see the recent insider purchase. On the other hand the transaction history, over the last year, isn’t so positive. While recent transactions indicate confidence in Turning Point Brands, insiders don’t own enough of the company to overcome our cautiousness about the longer term transactions. In short they are likely aligned with shareholders. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Turning Point Brands 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. On rare occasion, data errors may occur. Thank you for reading.
