We'd be surprised if Triumph Financial, Inc. (NYSE:TFIN) shareholders haven't noticed that the Executive VP, Adam Nelson, recently sold US$296k worth of stock at US$79.05 per share. That sale was 16% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At Triumph Financial

Over the last year, we can see that the biggest insider purchase was by Founder Aaron Graft for US$500k worth of shares, at about US$55.87 per share. Even though the purchase was made at a significantly lower price than the recent price (US$75.78), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months insiders purchased 15.95k shares for US$969k. But insiders sold 26.93k shares worth US$1.7m. Over the last year we saw more insider selling of Triumph Financial shares, than buying. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Triumph Financial better if I see some big insider buys.

Does Triumph Financial Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Triumph Financial insiders own 5.0% of the company, worth about US$94m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Triumph Financial Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. We're a little cautious about the insider selling at Triumph Financial. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Triumph Financial and understanding this should be part of your investment process.

But note: Triumph Financial 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.

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.