Some Shaw Communications Inc. (TSE:SJR.B) shareholders may be a little concerned to see that the Independent Director, Willard Yuill, recently sold a whopping CA$680k worth of stock at a price of CA$27.20 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.6%.
Shaw Communications Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Willard Yuill was not their only sale of Shaw Communications shares this year. Earlier in the year, they fetched CA$25.36 per share in a -CA$1.3m sale. That means that even when the share price was below the current price of CA$26.51, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 1.3%of Willard Yuill's holding.
We note that in the last year insiders divested 189651 shares for a total of CA$4.8m. Shaw Communications insiders didn't buy any shares over the last year. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Shaw Communications
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Shaw Communications insiders own 8.0% of the company, currently worth about CA$1.1b based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Shaw Communications Insider Transactions Indicate?
An insider sold Shaw Communications shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Shaw Communications makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Shaw Communications 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.
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 firstname.lastname@example.org. 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.