This Insider Has Just Sold Shares In Pinetree Capital

Anyone interested in Pinetree Capital Ltd. (TSE:PNP) should probably be aware that the President & Chairman, Damien Leonard, recently divested CA$153k worth of shares in the company, at an average price of CA$13.95 each. On the bright side, that sale was only 0.3% of their holding, so we doubt it's very meaningful, on its own.

Pinetree Capital Insider Transactions Over The Last Year

Notably, that recent sale by Damien Leonard is the biggest insider sale of Pinetree Capital shares that we've seen in the last year. That means that even when the share price was below the current price of CA$14.78, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 0.3% of Damien Leonard's holding.

All up, insiders sold more shares in Pinetree Capital than they bought, over the last year. The average sell price was around CA$12.69. We don't gain confidence from insider selling below the recent share price. But we wouldn't put too much weight on the insider selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Pinetree Capital

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Does Pinetree Capital Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Pinetree Capital insiders own 43% of the company, currently worth about CA$60m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Pinetree Capital Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Pinetree Capital makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. For example, Pinetree Capital has 3 warning signs (and 1 which is significant) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.