Potential Trinseo PLC (NYSE:TSE) shareholders may wish to note that the Senior VP, Angelo Chaclas, recently bought US$193k worth of stock, paying US$2.57 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 134%.
The Last 12 Months Of Insider Transactions At Trinseo
The Independent Director Matthew Farrell made the biggest insider purchase in the last 12 months. That single transaction was for US$361k worth of shares at a price of US$7.21 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.68). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. 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.
In the last twelve months insiders purchased 213.50k shares for US$1.1m. But insiders sold 11.14k shares worth US$28k. In the last twelve months there was more buying than selling by Trinseo insiders. The average buy price was around US$4.96. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Trinseo is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Trinseo
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Trinseo insiders own 1.7% of the company, worth about US$1.6m. We consider this fairly low insider ownership.
So What Do The Trinseo Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Trinseo insiders are expecting a bright future. 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. At Simply Wall St, we've found that Trinseo has 6 warning signs (4 don't sit too well with us!) that deserve your attention before going any further with your analysis.
Of course Trinseo 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.