Truist Financial Corporation (NYSE:TFC) is up 5.5%, but insiders still continue to see a loss of US$386k on their US$2.2m investment
Insiders who purchased US$2.2m worth of Truist Financial Corporation (NYSE:TFC) shares over the past year recouped some of their losses after price gained 5.5% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$386k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Truist Financial
The Last 12 Months Of Insider Transactions At Truist Financial
The insider Steven Voorhees made the biggest insider purchase in the last 12 months. That single transaction was for US$996k worth of shares at a price of US$49.82 each. That means that an insider was happy to buy shares at above the current price of US$45.02. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$2.2m for 40.13k shares. On the other hand they divested 7.78k shares, for US$514k. In the last twelve months there was more buying than selling by Truist Financial insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Truist Financial is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Truist Financial insiders own about US$184m worth of shares (which is 0.3% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Truist Financial Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Truist Financial shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Truist Financial insiders think the business has merit. 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.
Of course Truist Financial 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, 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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