This Insider Has Just Sold Shares In Senvest Capital

We'd be surprised if Senvest Capital Inc. (TSE:SEC) shareholders haven't noticed that the Vice President of Finance, George Malikotsis, recently sold CA$190k worth of stock at CA$380 per share. However, the silver lining is that the sale only reduced their total holding by 0.8%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Senvest Capital

The Last 12 Months Of Insider Transactions At Senvest Capital

Notably, that recent sale by Vice President of Finance George Malikotsis was not the only time they sold Senvest Capital shares this year. They previously made an even bigger sale of -CA$3.3m worth of shares at a price of CA$330 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$390. 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 14% of George Malikotsis's stake.

Insiders in Senvest Capital didn't buy any shares in 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!

I will like Senvest Capital better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Senvest Capital insiders own about CA$605m worth of shares (which is 64% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Senvest Capital Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But it is good to see that Senvest Capital is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Senvest Capital. For instance, we've identified 2 warning signs for Senvest Capital (1 is a bit concerning) you should be aware of.

Of course Senvest Capital 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 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.