Tidewater Inc. (NYSE:TDW) Insiders Increased Their Holdings

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Tidewater Inc. (NYSE:TDW).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Tidewater

The Last 12 Months Of Insider Transactions At Tidewater

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman Larry Rigdon bought US$288k worth of shares at a price of US$14.42 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.00). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Over the last year, we can see that insiders have bought 54.41k shares worth US$591k. On the other hand they divested 127.00 shares, for US$2.1k. Overall, Tidewater insiders were net buyers during the last year. They paid about US$10.87 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Tidewater is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Tidewater Boast High Insider Ownership?

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. Our data suggests Tidewater insiders own 1.8% of the company, worth about US$5.0m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Tidewater Tell Us?

It doesn't really mean much that no insider has traded Tidewater shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Tidewater insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tidewater. At Simply Wall St, we found 1 warning sign for Tidewater that deserve your attention before buying any shares.

Of course Tidewater 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, but not derivative transactions.

This article by Simply Wall St is general in nature. 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.

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