Bullish Tricon Residential Inc. (TSE:TCN) insiders filled their treasuries with US$1.6m worth of stock over last year
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tricon Residential Inc.'s (TSE:TCN) instance, it's good news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Tricon Residential
Tricon Residential Insider Transactions Over The Last Year
The Co-Founder & Non Independent Director Geoffrey Matus made the biggest insider purchase in the last 12 months. That single transaction was for CA$575k worth of shares at a price of CA$11.50 each. That means that an insider was happy to buy shares at above the current price of CA$10.32. 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.
While Tricon Residential insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Tricon Residential Insiders Bought Stock Recently
It's good to see that Tricon Residential insiders have made notable investments in the company's shares. Overall, two insiders shelled out CA$80k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.
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. It appears that Tricon Residential insiders own 2.9% of the company, worth about CA$80m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Tricon Residential Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Tricon Residential insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tricon Residential. Our analysis shows 4 warning signs for Tricon Residential (2 shouldn't be ignored!) and we strongly recommend you look at these before investing.
Of course Tricon Residential 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.
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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.
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