Alimentation Couche-Tard Insiders Sell US$13m Of Stock, Possibly Signalling Caution

Over the past year, many Alimentation Couche-Tard Inc. (TSE:ATD) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. 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 do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Alimentation Couche-Tard

The Last 12 Months Of Insider Transactions At Alimentation Couche-Tard

In the last twelve months, the biggest single sale by an insider was when the Co-Founder & Corporate Director, Richard Fortin, sold CA$12m worth of shares at a price of CA$78.52 per share. That means that an insider was selling shares at around the current price of CA$76.75. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

Over the last year, we can see that insiders have bought 19.50k shares worth CA$1.4m. On the other hand they divested 165.00k shares, for CA$13m. All up, insiders sold more shares in Alimentation Couche-Tard than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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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. Alimentation Couche-Tard insiders own 4.4% of the company, currently worth about CA$3.2b 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.

So What Does This Data Suggest About Alimentation Couche-Tard Insiders?

The fact that there have been no Alimentation Couche-Tard insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Alimentation Couche-Tard, we can't say the same about the selling of shares. 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. While conducting our analysis, we found that Alimentation Couche-Tard has 1 warning sign and it would be unwise to ignore it.

Of course Alimentation Couche-Tard may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.