We'd be surprised if The Timken Company (NYSE:TKR) shareholders haven't noticed that the Executive VP, Philip Fracassa, recently sold US$408k worth of stock at US$81.50 per share. However, the silver lining is that the sale only reduced their total holding by 5.1%, so we're hesitant to read anything much into it, on its own.
View our latest analysis for Timken
Over the last year, we can see that the biggest insider sale was by the Director, Richard Kyle, for US$4.5m worth of shares, at about US$90.21 per share. So what is clear is that an insider saw fit to sell at around the current price of US$83.12. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Timken insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Timken insiders own 5.6% of the company, worth about US$324m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
An insider hasn't bought Timken stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. 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. 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 found 2 warning signs for Timken that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
Discover if Timken might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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