Yahoo Finance The Independent Director of Trinseo PLC (NYSE:TSE), Jeffrey Cote, Just Bought 59% More Shares
Investors who take an interest in Trinseo PLC (NYSE:TSE) should definitely note that the Independent Director, Jeffrey Cote, recently paid US$31.76 per share to buy US$318k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 59%.
See our latest analysis for Trinseo
The Last 12 Months Of Insider Transactions At Trinseo
In fact, the recent purchase by Jeffrey Cote was the biggest purchase of Trinseo shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$31.32). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 16.00k shares for US$607k. But they sold 1.74k shares for US$101k. In the last twelve months there was more buying than selling by Trinseo insiders. Their average price was about US$37.95. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Trinseo is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. From our data, it seems that Trinseo insiders own 0.8% of the company, worth about US$9.0m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Does This Data Suggest About Trinseo Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Trinseo stock. 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. Be aware that Trinseo is showing 5 warning signs in our investment analysis, and 2 of those are potentially serious...
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. 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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