We'd be surprised if MTY Food Group Inc. (TSE:MTY) shareholders haven't noticed that the Independent Director, Dickie Orr, recently sold CA$220k worth of stock at CA$44.02 per share. On the bright side, that sale was only 5.6% of their holding, so we doubt it's very meaningful, on its own.
MTY Food Group Insider Transactions Over The Last Year
Notably, that recent sale by Dickie Orr is the biggest insider sale of MTY Food Group shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of CA$39.53. 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.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. MTY Food Group insiders own about CA$231m worth of shares (which is 23% 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 Do The MTY Food Group Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at MTY Food Group, in the last three months. 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. To that end, you should learn about the 2 warning signs we've spotted with MTY Food Group (including 1 which is concerning).
Of course MTY Food Group 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, but not derivative transactions.
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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. 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.
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