Are Insiders Selling Genworth MI Canada Inc. (TSE:MIC) Stock?
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Genworth MI Canada Inc. (TSE:MIC).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
See our latest analysis for Genworth MI Canada
Genworth MI Canada Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the President, Stuart Levings, sold CA$676k worth of shares at a price of CA$44.50 per share. That means that even when the share price was below the current price of CA$50.60, 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. 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. We note that the biggest single sale was only 33.7% of Stuart Levings's holding.
Over the last year, we note insiders sold 38402 shares worth CA$1.7m. In the last year Genworth MI Canada insiders didn't buy any company stock. 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!
I will like Genworth MI Canada 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 Genworth MI Canada Boast High 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. Insiders own 0.2% of Genworth MI Canada shares, worth about CA$10m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Genworth MI Canada Tell Us?
The fact that there have been no Genworth MI Canada insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Genworth MI Canada insiders. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Genworth MI Canada, you should check out this free report on analyst forecasts for the company.
Of course Genworth MI Canada 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.
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.
