Read This Before Buying Accord Financial Corp. (TSE:ACD) Shares

It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Accord Financial Corp. (TSE:ACD).

What Is Insider Buying?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for Accord Financial

Accord Financial Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Fred Moss, sold CA$65k worth of shares at a price of CA$4.61 per share. That means that an insider was selling shares at slightly below the current price (CA$6.80). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 20% of Fred Moss's stake. Fred Moss was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 4.25k shares worth CA$30k. On the other hand they divested 20.00k shares, for CA$98k. Fred Moss divested 20.00k shares over the last 12 months at an average price of CA$4.90. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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 Accord Financial 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. From looking at our data, insiders own CA$2.8m worth of Accord Financial stock, about 4.8% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The Accord Financial Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Accord Financial shares in the last quarter. The insider transactions at Accord Financial are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. While we like knowing 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. To that end, you should learn about the 4 warning signs we've spotted with Accord Financial (including 2 which can't be ignored).

Of course Accord Financial 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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