We'd be surprised if Trinity Industries, Inc. (NYSE:TRN) shareholders haven't noticed that the Executive VP & CFO, Eric Marchetto, recently sold US$274k worth of stock at US$28.00 per share.    On the bright side, that sale was only 4.0% of their holding, so we doubt it's very meaningful, on its own.    

Trinity Industries Insider Transactions Over The Last Year

Notably, that recent sale by Executive VP & CFO Eric Marchetto was not the only time they sold Trinity Industries shares this year.  They previously made an even bigger sale of -US$320k worth of shares at a price of US$27.00 per share.     So it's clear an insider wanted to take some cash off the table, even below the current price of US$27.85.  As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation.  However, while insider selling is sometimes discouraging, it's only a weak signal.   This single sale was just 4.5% of Eric Marchetto's stake.    

Insiders in Trinity Industries didn't buy any shares in 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!

NYSE:TRN Insider Trading Volume April 1st 2024

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Trinity Industries Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own.  A high insider ownership often makes company leadership more mindful of shareholder interests.   Trinity Industries insiders own about US$24m worth of shares. That equates to 1.1% of the company.  While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.  

So What Do The Trinity Industries Insider Transactions Indicate?

Insiders  sold Trinity Industries shares recently, but they didn't buy any.     And even if we look at the last year, we didn't see any purchases.    On the plus side, Trinity Industries 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.    Our analysis shows 4 warning signs for Trinity Industries (1 can't be ignored!) and we strongly recommend you look at them before investing.  

But note: Trinity Industries 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 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.