Insider Buying: Tiptree Executive Chairman of the Board & CEO Bought US$502k Of Shares
Tiptree Inc. (NASDAQ:TIPT) shareholders (or potential shareholders) will be happy to see that the Executive Chairman of the Board & CEO, Michael Barnes, recently bought a whopping US$502k worth of stock, at a price of US$16.24. There's no denying a buy of that magnitude suggests conviction in a brighter future, although we do note that proportionally it only increased their holding by 0.3%.
The Last 12 Months Of Insider Transactions At Tiptree
In fact, the recent purchase by Michael Barnes was the biggest purchase of Tiptree shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$17.21 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Tiptree share holders is that insiders were buying at near the current price.
In the last twelve months Tiptree insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Tiptree
Tiptree is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Tiptree
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Tiptree insiders own about US$239m worth of shares (which is 39% of the company). 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 Tiptree Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Tiptree. That's what I like to see! While it's good to be aware of 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. For instance, we've identified 3 warning signs for Tiptree (2 don't sit too well with us) you should be aware of.
Of course Tiptree may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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