Have Exco Technologies Insiders Been Selling Stock?

We note that the Exco Technologies Limited (TSE:XTC) Executive Vice President, Paul Riganelli, recently sold CA$87k worth of stock for CA$7.80 per share. On the bright side, that's just a small sale and only reduced their holding by 5.3%.

Check out our latest analysis for Exco Technologies

Exco Technologies Insider Transactions Over The Last Year

In fact, the recent sale by Executive Vice President Paul Riganelli was not their only sale of Exco Technologies shares this year. They previously made an even bigger sale of -CA$115k worth of shares at a price of CA$7.80 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$7.94. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 6.4% of Paul Riganelli's holding.

Over the last year we saw more insider selling of Exco Technologies shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Exco Technologies better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by 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. It's great to see that Exco Technologies insiders own 54% of the company, worth about CA$167m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Exco Technologies Insiders?

An insider sold Exco Technologies shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Exco Technologies is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Exco Technologies (1 doesn't sit too well with us) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.