We'd be surprised if The Timken Company (NYSE:TKR) shareholders haven't noticed that the Executive VP, Philip Fracassa, recently sold US$370k worth of stock at US$74.03 per share. On the bright side, that sale was only 5.3% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Timken

The Last 12 Months Of Insider Transactions At Timken

The President, Richard Kyle, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$77.21 each. So what is clear is that an insider saw fit to sell at around the current price of US$74.44. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Timken didn't buy any shares in 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!

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

Does Timken Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Timken insiders own 4.5% of the company, worth about US$234m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Timken Tell Us?

Insiders sold Timken 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, Timken makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 2 warning signs with Timken and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.