It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in MCAN Mortgage Corporation (TSE:MKP).
What Is Insider Selling?
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.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 MCAN Mortgage
Over the last year, we can see that the biggest insider sale was by Leonard Zaidener for CA$710k worth of shares, at about CA$17.95 per share. That is hardly a positive sign, even though it took place above the latest price (CA$14.44). So it may not tell us anything about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid CA$1.0m for 69.71k shares. On the other hand they divested 72.87k shares, for CA$1.3m. All up, insiders sold more shares in MCAN Mortgage than they bought, over the last year. The average sell price was around CA$17.52. It is certainly not great to see that insiders have sold shares in the company. But the selling was at much higher prices than the current share price (CA$14.44), so it probably doesn’t tell us a lot about the value on offer today. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
MCAN Mortgage is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
MCAN Mortgage Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at MCAN Mortgage. Not only was there no selling that we can see, but they collectively bought CA$186k worth of shares. That shows some optimism about the company’s future.
Insider Ownership of MCAN Mortgage
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. MCAN Mortgage insiders own about CA$60m worth of shares. That equates to 17% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At MCAN Mortgage Tell Us?
It is good to see recent purchasing. But we can’t say the same for the transactions over the last 12 months. We don’t take much heart from transactions by MCAN Mortgage insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. Of course, the future is what matters most. So if you are interested in MCAN Mortgage, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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