Have Savaria Insiders Been Selling Stock?

We wouldn't blame Savaria Corporation (TSE:SIS) shareholders if they were a little worried about the fact that Marcel Bourassa, the Executive Chairman recently netted about CA$41m selling shares at an average price of CA$20.63. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Savaria

Savaria Insider Transactions Over The Last Year

In fact, the recent sale by Marcel Bourassa was the biggest sale of Savaria shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (CA$21.70). 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 15% of Marcel Bourassa's holding.

Over the last year, we can see that insiders have bought 218.06k shares worth CA$3.3m. But insiders sold 2.06m shares worth CA$42m. In total, Savaria insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 Savaria

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. Savaria insiders own 17% of the company, currently worth about CA$266m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Savaria Tell Us?

Insiders sold Savaria shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. But since Savaria is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Savaria. While conducting our analysis, we found that Savaria has 2 warning signs and it would be unwise to ignore them.

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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.