Possible Bearish Signals With TD SYNNEX Insiders Disposing Stock

Simply Wall St · 10/15 11:05

In the last year, many TD SYNNEX Corporation (NYSE:SNX) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for TD SYNNEX

TD SYNNEX Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Michael Urban, for US$1.0m worth of shares, at about US$105 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$120. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 27% of Michael Urban's holding.

TD SYNNEX insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:SNX Insider Trading Volume October 15th 2024

I will like TD SYNNEX better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insiders At TD SYNNEX Have Sold Stock Recently

The last quarter saw substantial insider selling of TD SYNNEX shares. Specifically, Independent Chairman & Lead Independent Director Ann Vezina ditched US$235k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Does TD SYNNEX 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. A high insider ownership often makes company leadership more mindful of shareholder interests. TD SYNNEX insiders own 1.4% of the company, currently worth about US$145m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About TD SYNNEX Insiders?

An insider hasn't bought TD SYNNEX stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that TD SYNNEX is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in TD SYNNEX, you should check out this free report on analyst forecasts for the company.

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.