Have Keyera Corp. (TSE:KEY) Insiders Been Selling Their Stock?

Some Keyera Corp. (TSE:KEY) shareholders may be a little concerned to see that the Chairman of the Board, James Bertram, recently sold a whopping CA$3.3m worth of stock at a price of CA$32.89 per share. That sale reduced their total holding by 10.9% which is hardly insignificant, but far from the worst we’ve seen.

See our latest analysis for Keyera

The Last 12 Months Of Insider Transactions At Keyera

Notably, that recent sale by Chairman of the Board James Bertram was not the only time they sold Keyera shares this year. They previously made an even bigger sale of -CA$3.3m worth of shares at a price of CA$33.13 per share. So what is clear is that an insider saw fit to sell at around the current price of CA$31.98. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it’s not too bad (but it’s still not a positive).

Over the last year we saw more insider selling of Keyera shares, than buying. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

TSX:KEY Recent Insider Trading, August 24th 2019
TSX:KEY Recent Insider Trading, August 24th 2019

Does Keyera Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. 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 appears that Keyera insiders own 1.1% of the company, worth about CA$75m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Keyera Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Keyera stock, than buying, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. But since Keyera is profitable and growing, we’re not too worried by this. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’re in no rush to buy! Of course, the future is what matters most. So if you are interested in Keyera, you should check out this free report on analyst forecasts for the company.

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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.