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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Great Canadian Gaming Corporation (TSE:GC), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Great Canadian Gaming Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the , Christopher Roberts, sold CA$1.3m worth of shares at a price of CA$51.27 per share. So we know that an insider sold shares at around the present share price of CA$44.30. 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. Notably Christopher Roberts was also the biggest buyer, having purchased CA$246k worth of shares.
Over the last year, we can see that insiders have bought 5700 shares worth CA$246k. But insiders sold 47379 shares worth CA$2.4m. Over the last year we saw more insider selling of Great Canadian Gaming shares, than buying. You can see a visual depiction of insider transactions (by 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!
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).
Great Canadian Gaming Insiders Bought Stock Recently
Over the last three months, we’ve seen significantly more insider buying, than insider selling, at Great Canadian Gaming. Insiders spent CA$190k on shares. But Craig Betts sold shares worth CA$55k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Great Canadian Gaming insiders own 0.5% of the company, worth about CA$12m. Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Great Canadian Gaming Insiders?
The recent insider purchases are heartening. But we can’t say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Great Canadian Gaming insiders haven’t shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. Of course, the future is what matters most. So if you are interested in Great Canadian Gaming, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.