Have goeasy Insiders Been Selling Stock?

Some goeasy Ltd. (TSE:GSY) shareholders may be a little concerned to see that the Executive Chairman, David Ingram, recently sold a substantial CA$4.7m worth of stock at a price of CA$158 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.7%.

Check out our latest analysis for goeasy

The Last 12 Months Of Insider Transactions At goeasy

In fact, the recent sale by David Ingram was the biggest sale of goeasy shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$166. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 7.7% of David Ingram's holding.

In the last twelve months insiders purchased 1.90k shares for CA$227k. On the other hand they divested 62.54k shares, for CA$9.0m. In total, goeasy insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that goeasy insiders own 22% of the company, worth about CA$620m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At goeasy Tell Us?

The stark truth for goeasy is that there has been more insider selling than insider buying in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But it is good to see that goeasy is growing earnings. 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. For example, goeasy has 4 warning signs (and 2 which don't sit too well with us) we think you should know about.

But note: goeasy 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.

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

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.