Yahoo Finance Tyson Foods Independent Vice Chairman of the Board & Lead Independent Director Acquires 62% More Stock \
Those following along with Tyson Foods, Inc. (NYSE:TSN) will no doubt be intrigued by the recent purchase of shares by Kevin McNamara, Independent Vice Chairman of the Board & Lead Independent Director of the company, who spent a stonking US$1.0m on stock at an average price of US$48.92. That increased their holding by a full 62%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Tyson Foods
Tyson Foods Insider Transactions Over The Last Year
Notably, that recent purchase by Kevin McNamara is the biggest insider purchase of Tyson Foods shares that we've seen in the last year. That implies that an insider found the current price of US$50.12 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Tyson Foods insiders decided to buy shares at close to current prices.
In the last twelve months Tyson Foods insiders were buying shares, but not selling. 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!
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).
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. We usually like to see fairly high levels of insider ownership. Tyson Foods insiders own 1.1% of the company, currently worth about US$200m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Tyson Foods Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tyson Foods. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tyson Foods. Every company has risks, and we've spotted 3 warning signs for Tyson Foods you should know about.
But note: Tyson Foods 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, but not derivative transactions.
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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.
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