Insiders of Torrent Capital Ltd. (CVE:TORR) are probably glad they bought last year as their CA$918k investment now stands at CA$1.0m

By
Simply Wall St
Published
November 23, 2021
TSXV:TORR
Source: Shutterstock

Insiders who bought Torrent Capital Ltd. (CVE:TORR) stock lover the last 12 months are probably not as affected by last week’s 11% loss. Even after accounting for the recent loss, the CA$918k worth of stock purchased by them is now worth CA$1.0m or in other words, their investment continues to give good returns.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Torrent Capital

The Last 12 Months Of Insider Transactions At Torrent Capital

In the last twelve months, the biggest single purchase by an insider was when President Wade Dawe bought CA$207k worth of shares at a price of CA$1.05 per share. That implies that an insider found the current price of CA$1.07 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Torrent Capital insiders decided to buy shares at close to current prices.

While Torrent Capital insiders bought shares during the last year, they didn't sell. 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!

insider-trading-volume
TSXV:TORR Insider Trading Volume November 23rd 2021

Torrent Capital is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Torrent Capital Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Torrent Capital. Not only was there no selling that we can see, but they collectively bought CA$439k worth of shares. That shows some optimism about the company's future.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Torrent Capital insiders own about CA$14m worth of shares (which is 49% 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.

What Might The Insider Transactions At Torrent Capital Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Torrent Capital. That's what I like to see! 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. To that end, you should learn about the 2 warning signs we've spotted with Torrent Capital (including 1 which makes us a bit uncomfortable).

But note: Torrent 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, but not derivative transactions.

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