This Insider Has Just Sold Shares In Reko International Group Inc. (CVE:REKO)

We wouldn't blame Reko International Group Inc. (CVE:REKO) shareholders if they were a little worried about the fact that Diane Reko, the Chairman recently netted about CA$813k selling shares at an average price of CA$2.96. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.9%.

View our latest analysis for Reko International Group

Reko International Group Insider Transactions Over The Last Year

In fact, the recent sale by Diane Reko was the biggest sale of Reko International Group shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of CA$3.14, 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 just 6.9% of Diane Reko's stake.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Reko International Group insiders own about CA$12m worth of shares (which is 63% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Reko International Group Insiders?

Unfortunately, there has been more insider selling of Reko International Group stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. Be aware that Reko International Group is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Reko International Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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