Trade Alert: The Independent Director Of Quorum Information Technologies Inc. (CVE:QIS), Joseph Campbell, Has Sold Some Shares Recently

We'd be surprised if Quorum Information Technologies Inc. (CVE:QIS) shareholders haven't noticed that the Independent Director, Joseph Campbell, recently sold CA$243k worth of stock at CA$0.90 per share. In particular, we note that the sale equated to a 74% reduction in their position size, which doesn't exactly instill confidence.

View our latest analysis for Quorum Information Technologies

The Last 12 Months Of Insider Transactions At Quorum Information Technologies

Notably, that recent sale by Joseph Campbell is the biggest insider sale of Quorum Information Technologies shares that we've seen in the last year. That means that even when the share price was below the current price of CA$1.10, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 74% of Joseph Campbell's stake.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Quorum Information Technologies Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Quorum Information Technologies insiders own 11% of the company, worth about CA$9.0m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Quorum Information Technologies Tell Us?

The stark truth for Quorum Information Technologies is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Quorum Information Technologies you should know about.

Of course Quorum Information Technologies 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.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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