This Insider Has Just Sold Shares In Empire

Some Empire Company Limited (TSE:EMP.A) shareholders may be a little concerned to see that the President, Michael Medline, recently sold a substantial CA$1.4m worth of stock at a price of CA$40.69 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.

Check out our latest analysis for Empire

The Last 12 Months Of Insider Transactions At Empire

In fact, the recent sale by Michael Medline was the biggest sale of Empire shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (CA$40.73). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 18% of Michael Medline's holding.

In the last twelve months insiders purchased 16.38k shares for CA$563k. But they sold 99.56k shares for CA$3.8m. In total, Empire insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Empire Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Empire insiders own 13% of the company, currently worth about CA$1.3b 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 Empire Insiders?

Insiders haven't bought Empire stock in the last three months, but there was some selling. 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. Every company has risks, and we've spotted 1 warning sign for Empire you should know about.

But note: Empire 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.