Insider Buying: The Torrent Capital Ltd. (CVE:TORR) Director Just Bought 7.8% More Shares
Even if it's not a huge purchase, we think it was good to see that Harold Megann, the Director of Torrent Capital Ltd. (CVE:TORR) recently shelled out CA$69k to buy stock, at CA$0.93 per share. Although the purchase is not a big one, increasing their shareholding by only 7.8%, it can be interpreted as a good sign.
View our latest analysis for Torrent Capital
Torrent Capital Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, George Armoyan, sold CA$202k worth of shares at a price of CA$0.63 per share. That means that even when the share price was below the current price of CA$0.95, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 60% of George Armoyan's stake. The only individual insider seller over the last year was George Armoyan.
Happily, we note that in the last year insiders paid CA$378k for 696.00k shares. But insiders sold 525.50k shares worth CA$320k. In the last twelve months there was more buying than selling by Torrent Capital insiders. They paid about CA$0.54 on average. It is certainly positive to see that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Torrent Capital is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Torrent Capital
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. Torrent Capital insiders own about CA$8.5m worth of shares. That equates to 37% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Torrent Capital Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Torrent Capital we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Torrent Capital. For example, Torrent Capital has 3 warning signs (and 1 which is a bit concerning) we think you should know about.
But note: Torrent Capital 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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