Stock Analysis

Have Insiders Sold GFL Environmental Inc. (TSE:GFL) Shares Recently?

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We wouldn't blame GFL Environmental Inc. (TSE:GFL) shareholders if they were a little worried about the fact that Greg Yorston, the Executive VP & COO of Solid Waste recently netted about CA$3.6m selling shares at an average price of CA$42.17. That sale reduced their total holding by 22% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At GFL Environmental

Notably, that recent sale by Greg Yorston is the biggest insider sale of GFL Environmental shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of CA$44.18. 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. We note that the biggest single sale was only 22%of Greg Yorston's holding.

Over the last year, we can see that insiders have bought 47.35k shares worth CA$1.8m. On the other hand they divested 160.49k shares, for CA$6.5m. In total, GFL Environmental insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

TSX:GFL Insider Trading Volume March 16th 2023

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).

Does GFL Environmental Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. GFL Environmental insiders own about CA$1.0b worth of shares (which is 6.9% 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.

What Might The Insider Transactions At GFL Environmental Tell Us?

The insider sales have outweighed the insider buying, at GFL Environmental, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for GFL Environmental that deserve your attention before buying any shares.

But note: GFL Environmental 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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