Typically, when an insider buys shares, it may not be a monumental event. But when several insiders buy as they did in the case of Torrent Capital Ltd. (CVE:TORR), which sends a positive message to the company's shareholders.
While insider trading isn't the be-all and end-all when it comes to long-term investing, logic dictates that some attention should be paid to whether insiders are buying or selling stocks.
Check out our latest analysis for Torrent Capital
The last 12 months of insider transactions at Torrent Capital
Over the last year, we can see that the biggest insider purchase was made by President Wade Dawe for C$99,000 worth of shares, at about C$0.73 per share. Therefore, it is clear that an insider wanted to buy, even at a higher price than the current share price (CAD$0.67). While his opinion may have changed since the purchase was made, this at least suggests they have been confident in the company's future. For us, it is very important to consider the price insiders pay for the stock. As a general rule, we feel more positive about a stock if insiders have bought shares at higher than current prices, because that suggests they saw the stock as a good value, even at a higher price.
While Torrent Capital insiders have bought shares over the last year, they haven't sold them. You can see the insider transactions (by companies and individuals) over the last year in the chart below. If you want to know exactly who sold, for how much and when, just click on the chart below!
Torrent Capital isn't the only stock insiders are buying. So check this out. free list of growing companies with insider buying.
Does Torrent Capital have a high level of insider ownership?
Looking at the total insider holdings in a company can help you determine if they are well aligned with common shareholders. I think it's a good sign that insiders own a significant number of shares in the company. Torrent Capital insiders own about CA$7.1m worth of shares (which is 42% of the company). I like to see this level of insider ownership, because it increases the chance that management has shareholders' best interests in mind.
So what do Torrent Capital's internal transactions indicate?
The fact that there have been no internal Torrent Capital transactions recently does not bother us. However, our analysis of transactions over the last year is encouraging. Judging by its transactions and high insider ownership, Torrent Capital insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks a particular company faces. Every company has risks and we have detected 4 warning signs for Torrent Capital (of which 3 don't suit us very well!) that you should know about.
Of course, You might find a fantastic investment if you look elsewhere. So check this out. free list of interesting companies.
For the purposes of this article, insiders are considered those people who report their transactions to the corresponding regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or financial situation. Our goal is to provide you with focused, long-term 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 stocks mentioned.
