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Founder John Fowler Just Sold A Bunch Of Shares In The Supreme Cannabis Company, Inc. (TSE:FIRE)

Simply Wall St

Some The Supreme Cannabis Company, Inc. (TSE:FIRE) shareholders may be a little concerned to see that the Founder, John Fowler, recently sold a whopping CA$1.6m worth of stock at a price of CA$1.09 per share. That diminished their holding by a very significant 60%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Supreme Cannabis Company

Supreme Cannabis Company Insider Transactions Over The Last Year

Notably, that recent sale by John Fowler is the biggest insider sale of Supreme Cannabis Company shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of CA$1.07. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 614336 shares worth CA$1.0m. But they sold 1513388 for CA$1.7m. All up, insiders sold more shares in Supreme Cannabis Company than they bought, over the last year. The average sell price was around CA$1.10. It's not ideal to see that insiders have sold at around the current price. But we don't put too much weight on the insider selling, since sellers could have personal reasons. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

TSX:FIRE Recent Insider Trading, October 9th 2019

I will like Supreme Cannabis Company better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Supreme Cannabis Company Boast High 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. From looking at our data, insiders own CA$4.6m worth of Supreme Cannabis Company stock, about 1.2% of the company. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Supreme Cannabis Company Insiders?

Unfortunately, there has been more insider selling of Supreme Cannabis Company stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly think twice before buying! Of course, the future is what matters most. So if you are interested in Supreme Cannabis Company, you should check out this free report on analyst forecasts for the company.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.