Some Terra Firma Capital Corporation (CVE:TII) shareholders may be a little concerned to see that the Executive Chairman, John Kaplan, recently sold a whopping CA$826k worth of stock at a price of CA$5.51 per share. That’s a big dump, and it decreased their holding size by 32%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Terra Firma Capital
Notably, that recent sale by John Kaplan is the biggest insider sale of Terra Firma Capital shares that we’ve seen in the last year. That means that an insider was selling shares at around the current price of CA$5.46. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
In the last twelve months insiders purchased 7.90k shares for CA$40k. But insiders sold 150000 shares worth CA$826k. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Terra Firma Capital
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Terra Firma Capital insiders own 20% of the company, worth about CA$6.0m. 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 Terra Firma Capital Tell Us?
An insider sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. But since Terra Firma Capital is profitable and growing, we’re not too worried by this. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. So we’d only buy after careful consideration. Of course, the future is what matters most. So if you are interested in Terra Firma Capital, you should check out this free report on analyst forecasts for the company.
But note: Terra Firma Capital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
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