This Insider Has Just Sold Shares In Alimentation Couche-Tard

Some Alimentation Couche-Tard Inc. (TSE:ATD) shareholders may be a little concerned to see that the Co-Founder & Corporate Director, Richard Fortin, recently sold a substantial CA$12m worth of stock at a price of CA$78.10 per share. However, that sale only accounted for 1.9% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Alimentation Couche-Tard

Alimentation Couche-Tard Insider Transactions Over The Last Year

The President, Brian Hannasch, made the biggest insider sale in the last 12 months. That single transaction was for CA$77m worth of shares at a price of CA$81.00 each. So we know that an insider sold shares at around the present share price of CA$77.75. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.

In the last twelve months insiders purchased 7.59k shares for CA$556k. On the other hand they divested 1.79m shares, for CA$139m. All up, insiders sold more shares in Alimentation Couche-Tard 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. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Alimentation Couche-Tard Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Alimentation Couche-Tard insiders own about CA$3.3b worth of shares (which is 4.4% of the company). 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 Does This Data Suggest About Alimentation Couche-Tard Insiders?

The insider sales have outweighed the insider buying, at Alimentation Couche-Tard, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since Alimentation Couche-Tard is profitable and growing, we're not too worried by this. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alimentation Couche-Tard. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Alimentation Couche-Tard.

But note: Alimentation Couche-Tard 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.