Don’t Ignore The Fact That This Insider Just Sold Some Shares In Intact Financial Corporation (TSE:IFC)

Anyone interested in Intact Financial Corporation (TSE:IFC) should probably be aware that a company insider, Mark Tullis, recently divested CA$616k worth of shares in the company, at an average price of CA$154 each. However, the silver lining is that the sale only reduced their total holding by 9.8%, so we’re hesitant to read anything much into it, on its own.

View our latest analysis for Intact Financial

Intact Financial Insider Transactions Over The Last Year

In fact, the recent sale by insider Mark Tullis was not their only sale of Intact Financial shares this year. They previously made an even bigger sale of -CA$795.2k worth of shares at a price of CA$126 per share. That means that an insider was selling shares at slightly below the current price (CA$151). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 14% of Mark Tullis’s holding.

In the last year Intact Financial insiders didn’t buy any company stock. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:IFC Recent Insider Trading, February 14th 2020
TSX:IFC Recent Insider Trading, February 14th 2020

I will like Intact Financial better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Intact Financial Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 0.5% of Intact Financial shares, worth about CA$112m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Intact Financial Insiders?

An insider hasn’t bought Intact Financial stock in the last three months, but there was some selling. And even if we look to the last year, we didn’t see any purchases. But since Intact Financial is profitable and growing, we’re not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

Of course Intact Financial may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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