Insider Sellers Might Regret Selling Tony G Co-Investment Holdings Shares at a Lower Price Than Current Market Value

Tony G Co-Investment Holdings Ltd.'s (CSE:TONY) value has fallen 15% in the last week, but insiders who sold CA$1.1m worth of stock over the last year have had less success. The average selling price of CA$3.10 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Tony G Co-Investment Holdings

The Last 12 Months Of Insider Transactions At Tony G Co-Investment Holdings

The Executive Chairman, Antanas Guoga, made the biggest insider sale in the last 12 months. That single transaction was for CA$1.1m worth of shares at a price of CA$3.18 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (CA$1.70). So it is hard to draw any strong conclusion from it. Antanas Guoga was the only individual insider to sell shares in the last twelve months. Notably Antanas Guoga was also the biggest buyer, having purchased CA$133k worth of shares.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Tony G Co-Investment Holdings Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Tony G Co-Investment Holdings. In total, Executive Chairman Antanas Guoga sold CA$1.1m worth of shares in that time. Meanwhile Executive Chairman Antanas Guoga bought CA$124k worth. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Tony G Co-Investment Holdings insiders own 28% of the company, worth about CA$6.9m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Tony G Co-Investment Holdings Insiders?

Unfortunately, there has been more insider selling of Tony G Co-Investment Holdings stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 5 warning signs for Tony G Co-Investment Holdings you should be aware of, and 3 of these are potentially serious.

Of course Tony G Co-Investment Holdings 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.