Savaria Insiders Sold CA$43m Of Shares Suggesting Hesitancy

In the last year, many Savaria Corporation (TSE:SIS) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Savaria

Savaria Insider Transactions Over The Last Year

The Executive Chairman, Marcel Bourassa, made the biggest insider sale in the last 12 months. That single transaction was for CA$41m worth of shares at a price of CA$20.63 each. That means that an insider was selling shares at around the current price of CA$20.06. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Notably Marcel Bourassa was also the biggest buyer, having purchased CA$2.0m worth of shares.

Happily, we note that in the last year insiders paid CA$2.0m for 111.62k shares. But insiders sold 2.07m shares worth CA$43m. 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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Insiders At Savaria Have Bought Stock Recently

Over the last quarter, Savaria insiders have spent a meaningful amount on shares. Specifically, Chief Transformation Officer Jean-Philippe De Montigny bought CA$449k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Savaria insiders own about CA$244m worth of shares (which is 17% of the company). 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 Do The Savaria Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Savaria. Case in point: We've spotted 1 warning sign for Savaria you should be aware of.

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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.