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How Much Are Tassal Group Limited (ASX:TGR) Insiders Taking Off The Table?

Simply Wall St

We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Tassal Group Limited (ASX:TGR).

What Is Insider Selling?

It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’

See our latest analysis for Tassal Group

The Last 12 Months Of Insider Transactions At Tassal Group

MD, CEO & Director Mark Ryan made the biggest insider sale in the last 12 months. That single transaction was for AU$964k worth of shares at a price of AU$4.82 each. That means that even when the share price was below the current price of AU$4.94, an insider wanted to cash in some shares. While their view may have changed since they sold, this isn’t a particularly bullish sign. We generally consider it a negative if insiders have been selling on market, especially if they did so below the current price. We note that the biggest single sale was 55.5% of Mark Ryan’s holding. The only individual insider seller over the last year was Mark Ryan.

In the last twelve months insiders purchased 75.99k shares for AU$324k. On the other hand they divested 200.00k shares, for AU$964k. You can see a visual depiction of insider transactions (by 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!

ASX:TGR Recent Insider Trading, March 7th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Tassal Group Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Tassal Group shares over the last three months. We note Mark Ryan cashed in AU$964k worth of shares. Meanwhile Director Georgina Lynch bought AU$109k worth. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.

Does Tassal Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. From our data, it seems that Tassal Group insiders own 1.6% of the company, worth about AU$14m. Whilst better than nothing, we’re not overly impressed by these holdings.

So What Do The Tassal Group Insider Transactions Indicate?

The stark truth for Tassal Group is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But since Tassal Group is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Tassal Group.

But note: Tassal Group 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.