Trade Alert: Executive Director Of Fiera Capital John Valentini Has Sold Stock

Some Fiera Capital Corporation (TSE:FSZ) shareholders may be a little concerned to see that the Executive Director, John Valentini, recently sold a substantial CA$1.0m worth of stock at a price of CA$7.83 per share. That sale reduced their total holding by 40% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Fiera Capital

Fiera Capital Insider Transactions Over The Last Year

Notably, that recent sale by Executive Director John Valentini was not the only time they traded Fiera Capital shares this year. Earlier in the year, they spent CA$3.4m to buy shares at CA$8.34 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$8.25). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Notably John Valentini was also the biggest seller.

Happily, we note that in the last year insiders paid CA$3.7m for 459.00k shares. But they sold 858.81k shares for CA$5.6m. In total, Fiera Capital insiders sold more than they bought over the last year. 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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Fiera Capital insiders own 20% of the company, currently worth about CA$175m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Fiera Capital Tell Us?

An insider sold Fiera Capital shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Fiera Capital is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example, Fiera Capital has 5 warning signs (and 2 which are a bit unpleasant) we think you should know about.

But note: Fiera Capital may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com