Over the last year, a good number of insiders have significantly increased their holdings in TransUnion (NYSE:TRU). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At TransUnion
Notably, that recent purchase by Christopher Cartwright is the biggest insider purchase of TransUnion shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$78.52). 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.
Over the last year, we can see that insiders have bought 25.28k shares worth US$2.0m. On the other hand they divested 3.91k shares, for US$340k. Overall, TransUnion insiders were net buyers during the last year. You can see the insider transactions (by companies and 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!
TransUnion is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At TransUnion Have Bought Stock Recently
At TransUnion,over the last quarter, we have observed quite a lot more insider buying than insider selling. We can see that President Christopher Cartwright paid US$2.0m for shares in the company. But insider William Bosworth sold shares worth US$32k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership Of TransUnion
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. Insiders own 0.3% of TransUnion shares, worth about US$41m. 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 TransUnion Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in TransUnion shares, given these transactions (along with notable insider ownership of the company). 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. To that end, you should learn about the 2 warning signs we've spotted with TransUnion (including 1 which is a bit concerning).
But note: TransUnion 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.
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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