Insiders who bought Torrent Capital Ltd. (CVE: TORR) lover of stocks, the past 12 months probably weren't affected as much by last week's 11% loss. Even after accounting for the recent loss, the shares you bought for CA $ 918,000 are now worth CA $ 1.0 million, or in other words, your investment continues to perform well.
While we would never suggest that investors base their decisions solely on what the directors of a company have been doing, we would consider it foolish to completely ignore insider trading.
See our latest Torrent Capital analysis
The last 12 months of insider trading at Torrent Capital
In the past twelve months, the largest purchase made by an insider was when President Wade Dawe bought shares worth CA $ 207,000 at a price of CA $ 1.05 per share. That implies that an insider found the current price of C $ 1.07 per share attractive. Of course they may have changed their minds. But this suggests that they are optimistic. While we always like to see insider purchases, it is less significant if the purchases were made at much lower prices, as the opportunity they saw may have passed. Fortunately, the insiders of Torrent Capital decided to buy shares at prices close to current prices.
While insiders at Torrent Capital bought shares over the past year, they didn't sell them. You can see a visual overview of internal transactions (by companies and individuals) for the last 12 months, below. By clicking on the chart below, you can see the precise details of each privileged transaction!
Torrent Capital isn't the only stock insiders are buying. So take a look at this free list of growing companies with internal purchases.
Torrent Capital insiders recently bought shares
Over the past three months, we have seen significant insider buying at Torrent Capital. Not only were there no sales that we can see, but they collectively bought CA $ 439k worth of stock. That shows some optimism about the future of the company.
Internal property
For a common shareholder, it is worth checking how many shares the insiders of the company have. A high level of internal ownership often makes company leadership more mindful of shareholder interests. Insiders of Torrent Capital own approximately CA $ 14 million in shares (which is 49% of the company). I like to see this level of insider ownership, because it increases the chances that management is having the best interests of shareholders in mind.
What can insider trading tell us at Torrent Capital?
Nice to see recent purchases. And an analysis of the transactions during the last year also gives us confidence. Once the high participation of insiders is taken into account, it certainly appears that insiders are positive about Torrent Capital. That's what I like to see! Therefore, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To that end, you must learn about the 2 warning signs we've seen with Torrent Capital (including 1 that makes us a bit uncomfortable).
But note: Torrent Capital may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those who report their transactions to the appropriate regulatory body. We currently account for open market transactions and private dispositions, but not derivatives transactions.
This Simply Wall St article is general in nature. We provide feedback based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell shares, and it does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the listed stocks.
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