A good number of insiders at The Container Store Group, Inc. (NYSE: TCS) have sold shares in the past year, which does not bode well for investors.
A number of The Container Stores Group, Inc. (NYSE: TCS) Insiders have sold their shares in the past year, which may have raised concerns among investors. When analyzing insider transactions, it is usually more useful to know if insiders are buying rather than knowing if they are selling, because the latter sends an ambiguous message. However, if many insiders are selling, shareholders should investigate further.
While insider trading isn’t the most important thing when it comes to investing for the long term, logic dictates that you pay attention to whether insiders are buying or selling stocks.
Insider Transactions of the Container Store Group in the Last Year
Over the past year, we can see that the biggest insider buy was made by CEO, Chairman and Director Satish Malhotra for US $ 251,000 of shares, at around US $ 12.25 per share. This means that even when the stock price was above US $ 10.83 (the recent price), an insider wanted to buy stocks. It is very possible that they regret the purchase, but it is more likely that they are optimistic about the business. For us, it’s very important to consider the price insiders pay for stocks. Generally speaking, this comes to our attention when an insider bought shares at prices higher than current prices, as it suggests that they thought the shares were worth buying, even at a higher price. Satish Malhotra was the only individual insider to buy shares in the past twelve months.
In total, insiders sold more shares of Container Store Group than they bought in the past year. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
NYSE: TCS Insider Trading Volume September 20, 2021
I will like Container Store Group better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Does the Container Store group have strong insider ownership?
For an ordinary shareholder, it is worth checking out how many shares are owned by company insiders. We generally like to see fairly high levels of insider ownership. Insiders own 4.1% of the shares of Container Store Group, worth about $ 22 million. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
So what do the Container Store group’s insider transactions indicate?
There haven’t been any insider trading in the past three months, that doesn’t mean much. Still, insider trading at Container Store Group over the past 12 months is not very encouraging. The modest level of insider ownership is, at least, some comfort. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. Concrete example: we have spotted 3 warning signs for Container Store Group you need to be aware of it, and one of them is a bit of a concern.
Sure, you might find a fantastic investment looking elsewhere. So take a look at this free list of interesting companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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