Trade Alert: The Independent Director Of Taylor Morrison Home Corporation (NYSE:TMHC), Denise Warren, Has Sold Some Shares Recently

We’d be surprised if Taylor Morrison Home Corporation (NYSE:TMHC) shareholders haven’t noticed that the Independent Director, Denise Warren, recently sold US$108k worth of stock at US$29.50 per share. Equally important, that sale actually reduced their holding by a full 100% which hardly makes us feel bullish about the stock.

View our latest analysis for Taylor Morrison Home

The Last 12 Months Of Insider Transactions At Taylor Morrison Home

Over the last year, we can see that the biggest insider sale was by the Independent Director, William Lyon, for US$33m worth of shares, at about US$31.77 per share. That means that an insider was selling shares at around the current price of US$28.90. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Taylor Morrison Home insiders didn’t buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It’s great to see that Taylor Morrison Home insiders own 4.1% of the company, worth about US$147m. 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 Do The Taylor Morrison Home Insider Transactions Indicate?

An insider sold stock recently, but they haven’t been buying. And even if we look at the last year, we didn’t see any purchases. But it is good to see that Taylor Morrison Home is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Taylor Morrison Home. Every company has risks, and we’ve spotted 2 warning signs for Taylor Morrison Home (of which 1 is a bit unpleasant!) you should know about.

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, but not derivative transactions.

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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.