Fiera Capital Corporation (TSE:FSZ) insiders sold CA$7.0m worth of stock last year which shareholders may not want to overlook

While Fiera Capital Corporation (TSE:FSZ) shareholders have enjoyed a good week with stock up 6.8%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell CA$7.0m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Fiera Capital

The Last 12 Months Of Insider Transactions At Fiera Capital

In the last twelve months, the biggest single sale by an insider was when the Director, Nitin Kumbhani, sold CA$2.8m worth of shares at a price of CA$10.65 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$11.47. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 6.8% of Nitin Kumbhani's stake. The only individual insider seller over the last year was Nitin Kumbhani.

Nitin Kumbhani ditched 653.30k shares over the year. The average price per share was CA$10.66. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insiders at Fiera Capital Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Fiera Capital. Specifically, Director Nitin Kumbhani ditched CA$5.6m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership of Fiera Capital

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.2% of Fiera Capital shares, worth about CA$14m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Fiera Capital Insiders?

An insider sold stock recently, but they haven't been buying. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that Fiera Capital is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Fiera Capital has 5 warning signs (and 1 which is potentially serious) we think you should know about.

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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.

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.

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