We'd be surprised if Townsquare Media, Inc. (NYSE:TSQ) shareholders haven't noticed that the Executive VP of IR & Corporate Communications, Claire Yenicay, recently sold US$322k worth of stock at US$6.06 per share. In particular, we note that the sale equated to a 75% reduction in their position size, which doesn't exactly instill confidence.

The Last 12 Months Of Insider Transactions At Townsquare Media

Notably, that recent sale by Claire Yenicay is the biggest insider sale of Townsquare Media shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$6.75). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 75% of Claire Yenicay's holding.

In the last twelve months insiders purchased 60.03k shares for US$407k. But insiders sold 212.82k shares worth US$1.2m. In total, Townsquare Media insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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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 Townsquare Media insiders own 16% of the company, worth about US$18m. 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 Townsquare Media Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Townsquare Media stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.