Anyone interested in TriMas Corporation (NASDAQ:TRS) should probably be aware that the Chief Compliance Officer, Joshua Sherbin, recently divested US$150k worth of shares in the company, at an average price of US$30.00 each. On the bright side, that sale was only 7.6% of their holding, so we doubt it's very meaningful, on its own.
TriMas Insider Transactions Over The Last Year
In fact, the recent sale by Chief Compliance Officer Joshua Sherbin was not their only sale of TriMas shares this year. Earlier in the year, they fetched US$30.40 per share in a -US$646.2k sale. That means that an insider was selling shares at slightly below the current price (US$31.32). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 25% of Joshua Sherbin's holding.
In the last twelve months insiders netted US$2.5m for 81883 shares sold. Insiders in TriMas didn't buy any shares in the last year. You can see the insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of TriMas
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It appears that TriMas insiders own 1.3% of the company, worth about US$19m. 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 TriMas Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that TriMas is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for TriMas.
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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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.