Tutor Perini Corporation (NYSE:TPC) shareholders (or potential shareholders) will be happy to see that the Lead Independent Director & Vice Chairman of the Board, Michael Klein, recently bought a whopping US$1.2m worth of stock, at a price of US$7.76. Not only is that a big swing, but it increased their holding size by 33%, which is definitely great to see.
Tutor Perini Insider Transactions Over The Last Year
In fact, the recent purchase by Michael Klein was the biggest purchase of Tutor Perini shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$9.56 per share to be enticing. 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. The good news for Tutor Perini share holders is that insiders were buying at near the current price.
Happily, we note that in the last year insiders paid US$1.4m for 181.75k shares. On the other hand they divested 50000 shares, for US$666k. In total, Tutor Perini insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by 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!
Tutor Perini is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Tutor Perini Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Tutor Perini insiders own about US$94m worth of shares. That equates to 19% of the company. 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 Tutor Perini Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Tutor Perini insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tutor Perini. Our analysis shows 2 warning signs for Tutor Perini (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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. Thank you for reading.