Anyone interested in Thermon Group Holdings, Inc. (NYSE:THR) should probably be aware that the Independent Director, Kevin McGinty, recently divested US$160k worth of shares in the company, at an average price of US$32.00 each. That sale was 11% of their holding, so it does make us raise an eyebrow.
See our latest analysis for Thermon Group Holdings
Thermon Group Holdings Insider Transactions Over The Last Year
The Vice President of Human Resources, Candace Harris-Peterson, made the biggest insider sale in the last 12 months. That single transaction was for US$173k worth of shares at a price of US$27.15 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$32.37. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 49% of Candace Harris-Peterson's stake.
Over the last year, we can see that insiders have bought 2.96k shares worth US$78k. On the other hand they divested 11.36k shares, for US$333k. All up, insiders sold more shares in Thermon Group Holdings than they bought, over the last year. 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!
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Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 Thermon Group Holdings insiders own 1.8% 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 Does This Data Suggest About Thermon Group Holdings Insiders?
An insider hasn't bought Thermon Group Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Thermon Group Holdings makes money, and is growing profits. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Thermon Group Holdings that deserve your attention before buying any shares.
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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 of direct interests only, but not derivative transactions or indirect interests.
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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.