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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Trisura Group Ltd. (TSE:TSU), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. 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'.
Trisura Group Insider Transactions Over The Last Year
Director Gregory Ernest Morrison made the biggest insider purchase in the last 12 months. That single transaction was for CA$255k worth of shares at a price of CA$25.50 each. That implies that an insider found the current price of CA$29.99 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Trisura Group insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 14000 shares worth CA$376k. But insiders sold 28900 shares worth CA$813k. In total, Trisura Group insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, 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.
Trisura Group Insiders Bought Stock Recently
It's good to see that Trisura Group insiders have made notable investments in the company's shares. We can see that Director Barton Hedges paid CA$121k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Trisura Group insiders own about CA$14m worth of shares. That equates to 7.1% of the company. 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 Trisura Group Insider Transactions Indicate?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Trisura Group insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Trisura Group.
But note: Trisura Group 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.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.