We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Theratechnologies Inc. (TSE:TH).
What Is Insider Buying?
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 don't think shareholders should simply follow insider transactions. 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.'
The Last 12 Months Of Insider Transactions At Theratechnologies
The Senior VP & Chief Medical Officer, Christian Marsolais, made the biggest insider sale in the last 12 months. That single transaction was for CA$385k worth of shares at a price of CA$9.52 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$4.98). So it may not shed much light on insider confidence at current levels. Christian Marsolais was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 51400 shares worth CA$206k. But insiders sold 45400 shares worth CA$417k. Christian Marsolais sold a total of 45400 shares over the year at an average price of US$9.18. You can see the insider transactions (by 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Theratechnologies Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Theratechnologies insiders have about 1.6% of the stock, worth approximately CA$6.0m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Theratechnologies Insiders?
The fact that there have been no Theratechnologies insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Theratechnologies insiders. And we're not picking up on high enough insider ownership to give us any comfort. Of course, the future is what matters most. So if you are interested in Theratechnologies, 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 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.