With Torrid Holdings Up 17%, Insider Buyers Count Their Returns
Insiders who bought Torrid Holdings Inc. (NYSE:CURV) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$74m as a result of the stock's 17% gain over the same period. In other words, the original US$327.7k purchase is now worth US$1.14m.
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.
Check out our latest analysis for Torrid Holdings
The Last 12 Months Of Insider Transactions At Torrid Holdings
In the last twelve months, the biggest single purchase by an insider was when Chief Commercial Officer Mark Mizicko bought US$300k worth of shares at a price of US$1.33 per share. Even though the purchase was made at a significantly lower price than the recent price (US$4.84), we still think insider buying is a positive. 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.
In the last twelve months Torrid Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Torrid Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Torrid Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Torrid Holdings. We can see that Chief Commercial Officer Mark Mizicko paid US$300k for shares in the company. No-one sold. That shows some optimism about the company's future.
Does Torrid Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Torrid Holdings insiders own 12% of the company, worth about US$59m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Torrid Holdings Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Torrid Holdings insiders are well aligned, and that they may think the share price is too low. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Torrid Holdings (2 make us uncomfortable!) that we believe deserve your full attention.
Of course Torrid Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
