We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in TriState Capital Holdings, Inc. (NASDAQ:TSC).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for TriState Capital Holdings

The Last 12 Months Of Insider Transactions At TriState Capital Holdings

The VP & Director Brian Fetterolf made the biggest insider purchase in the last 12 months. That single transaction was for US$76k worth of shares at a price of US$13.59 each. We do like to see buying, but this purchase was made at well below the current price of US$20.60. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Over the last year, we can see that insiders have bought 23.74k shares worth US$359k. But they sold 1.00k shares for US$23k. In total, TriState Capital Holdings insiders bought more than they sold over the last year. They paid about US$15.14 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

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

TriState Capital Holdings Insiders Bought Stock Recently

We saw some TriState Capital Holdings insider buying shares in the last three months. VP & Director Brian Fetterolf bought US$57k worth of shares in that time. But Independent Director Eugene Dewhurst sold US$23k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Does TriState Capital Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 7.9% of TriState Capital Holdings shares, worth about US$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About TriState Capital Holdings Insiders?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in TriState Capital Holdings and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TriState Capital Holdings. Case in point: We've spotted 1 warning sign for TriState Capital Holdings you should be aware of.

But note: TriState Capital Holdings 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, 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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