The recent 11% drop in Torrent Capital Ltd. (CVE: TORR) could be a blow to experts who bought CA$335k worth of shares at an average purchase price of CA$0.75 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, his original investment is now worth just CA$298k.
While insider trading isn't top of mind when it comes to long-term investing, we think it makes perfect sense to be aware of what insiders are up to.
See our latest analysis of Torrent Capital
Torrent Capital Insider transactions over the last year
Chairman Wade Dawe made the biggest insider buying in the past 12 months. That one transaction was for CA$99k worth of shares priced at CA$0.73 each. That means an insider was happy to buy shares above the current price of CA$0.67. They may very well regret the purchase, but they are more likely to be optimistic about the company. From our point of view, the price an insider pays for the shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares above current prices, because that suggests they saw the stock as a good value, even at a higher price.
Torrent Capital experts may have bought shares in the last year, but they didn't sell any. The following graph shows internal transactions (by companies and individuals) during the last year. If you click on the chart, you can see all the individual transactions, including the share price, the individual, and the date.
Torrent Capital isn't the only stock that experts buy. so take a look at this free list of growing companies with internal purchases.
Torrent Capital Insiders recently bought shares
There were some internal purchases at Torrent Capital during the last quarter. Chairman Wade Dawe bought CA$23k worth of shares in that period. It's great to see that experts only buy, not sell. But the amount invested in the last three months is not enough for us to give it much weight, as a single factor.
internal property
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I think it's a good sign if the insiders own a significant amount of shares in the company. Torrent Capital experts own around CAD 7.4 million in shares (representing 44% 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.
So what do Torrent Capital's insider trading indicate?
We note that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But pundits have shown more appetite for stocks over the past year. Judging by their transactions and high inside ownership, Torrent Capital members feel good about the future of the company. While we like to know what's going on with insider ownership and dealings, we also make sure to consider the risks a stock faces before making any investment decisions. All companies have risks, and we have detected 5 warning signs for Torrent Capital (of which 3 are worrisome!) that you should know about.
Of course Torrent Capital may not be the best stock to buy. So you might want to check this out free high quality business collection.
For the purposes of this article, insiders are those individuals who report their operations to the corresponding regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.
Valuation is complex, but we are helping to simplify it.
Find out if Torrent Capital is potentially overvalued or undervalued by consulting our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, internal transactions and financial health.
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This Simply Wall St article is general in nature. We provide feedback based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or 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 does not have a position in any of the mentioned stocks.
