This Insider Has Just Sold Shares In EQB

We wouldn't blame EQB Inc. (TSE:EQB) shareholders if they were a little worried about the fact that Andrew R. Moor, the President recently netted about CA$3.0m selling shares at an average price of CA$102. However, that sale only accounted for 5.0% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At EQB

Notably, that recent sale by Andrew R. Moor is the biggest insider sale of EQB shares that we've seen in the last year. That means that even when the share price was slightly below the current price of CA$104, an insider wanted to cash in some shares. 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. 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. It is worth noting that this sale was only 5.0% of Andrew R. Moor's holding.

In the last twelve months insiders purchased 4.81k shares for CA$388k. On the other hand they divested 161.54k shares, for CA$14m. Over the last year we saw more insider selling of EQB shares, than buying. The average sell price was around CA$88.07. We don't gain confidence from insider selling below the recent share price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of EQB

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. EQB insiders own about CA$66m worth of shares. That equates to 1.7% of the company. 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 EQB Tell Us?

The insider sales have outweighed the insider buying, at EQB, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that EQB is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. While it's good to be aware of 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. Case in point: We've spotted 1 warning sign for EQB you should be aware of.

Of course EQB 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 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.