Several Insiders Invested In Tilly's Flagging Positive News \
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Tilly's, Inc. (NYSE:TLYS), that sends out a positive message to the company's shareholders.
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.
Check out our latest analysis for Tilly's
The Last 12 Months Of Insider Transactions At Tilly's
The Co-Founder Hezy Shaked made the biggest insider purchase in the last 12 months. That single transaction was for US$299k worth of shares at a price of US$6.96 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$7.97. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Tilly's insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Tilly's 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 Tilly's Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of Tilly's shares, worth about US$62m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Tilly's Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Tilly's shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Tilly's insiders are doubting the company, and they do own shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for Tilly's (1 can't be ignored!) that we believe deserve your full attention.
But note: Tilly's 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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