Several Spin Master Insiders Sell Shares Sending Potential Negative Signal

Quite a few Spin Master Corp. (TSE:TOY) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

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The Last 12 Months Of Insider Transactions At Spin Master

Over the last year, we can see that the biggest insider sale was by the insider, Max Rangel, for CA$414k worth of shares, at about CA$25.34 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of CA$19.05. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Spin Master shares, than buying. 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!

View our latest analysis for Spin Master

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Insiders At Spin Master Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at Spin Master. insider Chi Wah Yuen sold CA$60k worth of shares in that time. But (as above) at least we saw CA$20k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Spin Master insiders own 63% of the company, worth about CA$1.2b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Spin Master Insider Transactions Indicate?

Our data shows a little more insider selling than buying in the last three months. But the net divestment is not enough to concern us at all. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Spin Master insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Spin Master. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Spin Master.

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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.