Yahoo Finance Tyson Foods Insiders Placed Bullish Bets Worth US$2.35m
Over the last year, a good number of insiders have significantly increased their holdings in Tyson Foods, Inc. (NYSE:TSN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Tyson Foods
The Last 12 Months Of Insider Transactions At Tyson Foods
In the last twelve months, the biggest single purchase by an insider was when Independent Vice Chairman of the Board & Lead Independent Director Kevin McNamara bought US$1.0m worth of shares at a price of US$48.92 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$59.41. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid US$2.3m for 48.25k shares. But they sold 19.36k shares for US$982k. In total, Tyson Foods insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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 Tyson Foods Have Sold Stock Recently
The last quarter saw substantial insider selling of Tyson Foods shares. In total, Director Noel White sold US$484k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.
Does Tyson Foods Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Tyson Foods insiders own 1.2% of the company, currently worth about US$254m 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?
An insider sold stock recently, but they haven't been buying. But we take heart from prior transactions. On top of that, insiders own a significant portion of the company. So we're happy to look past recent trading. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Tyson Foods.
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 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.
