We’d be surprised if Metro Inc. (TSE:MRU) shareholders haven’t noticed that the Independent Director, Marie-José Nadeau, recently sold CA$433k worth of stock at CA$56.34 per share. Equally important, that sale actually reduced their holding by a full 52.5% which hardly makes us feel bullish about the stock.
Metro Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP & Head of Quebec Division, Christian Bourbonniere, sold CA$2.2m worth of shares at a price of CA$48.57 per share. That means that an insider was selling shares at slightly below the current price (CA$57.89). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was 55.3% of Christian Bourbonniere’s holding.
We note that in the last year insiders divested 54270 shares for a total of CA$2.7m. Insiders in Metro didn’t buy any shares in the last year. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Insider Ownership of Metro
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Metro insiders own about CA$31m worth of shares. That equates to 0.2% of the company. 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 Metro Insiders?
An insider hasn’t bought Metro 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. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’d think twice before buying! 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.
But note: Metro 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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