Anyone interested in Taylor Devices, Inc. (NASDAQ:TAYD) should probably be aware that the Independent Director, Robert Carey, recently divested US$284k worth of shares in the company, at an average price of US$56.73 each. The eyebrow raising move amounted to a reduction of 39% in their holding.

The Last 12 Months Of Insider Transactions At Taylor Devices

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Fritz Armenat, sold US$311k worth of shares at a price of US$72.85 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$53.16. So it is hard to draw any strong conclusion from it.

Insiders in Taylor Devices didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Taylor Devices

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Taylor Devices insiders have about 2.6% of the stock, worth approximately US$4.7m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Taylor Devices Tell Us?

An insider sold Taylor Devices shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Taylor Devices is profitable and growing, we're not too worried by this. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. 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. In terms of investment risks, we've identified 1 warning sign with Taylor Devices and understanding this should be part of your investment process.

But note: Taylor Devices 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.