When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Thermon Group Holdings, Inc.'s (NYSE:THR) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Thermon Group Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Independent Director, Kevin McGinty, sold US$160k worth of shares at a price of US$32.00 per share. That means that even when the share price was below the current price of US$33.40, an insider wanted to cash in some shares. 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 11% of Kevin McGinty's stake. Kevin McGinty was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 12.56k shares worth US$318k. But they sold 5.00k shares for US$160k. In the last twelve months there was more buying than selling by Thermon Group Holdings insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Thermon Group Holdings Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Thermon Group Holdings. In total, insiders bought US$240k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Thermon Group Holdings Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Thermon Group Holdings insiders own 1.8% of the company, worth about US$20m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Thermon Group Holdings Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Thermon Group Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Thermon Group Holdings. For example - Thermon Group Holdings has 1 warning sign we think you should be aware of.
Of course Thermon Group Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.