SECURE Waste Infrastructure Insiders Sell CA$8.1m Of Stock, Possibly Signalling Caution

The fact that multiple SECURE Waste Infrastructure Corp. (TSE:SES) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our free stock report includes 2 warning signs investors should be aware of before investing in SECURE Waste Infrastructure. Read for free now.

SECURE Waste Infrastructure Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Chief Operating Officer, Corey Higham, for CA$2.4m worth of shares, at about CA$11.61 per share. That means that even when the share price was below the current price of CA$13.14, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 41% of Corey Higham's holding. Notably Corey Higham was also the biggest buyer, having purchased CA$6.3m worth of shares.

Happily, we note that in the last year insiders paid CA$6.3m for 513.87k shares. On the other hand they divested 645.15k shares, for CA$8.1m. All up, insiders sold more shares in SECURE Waste Infrastructure than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for SECURE Waste Infrastructure

I will like SECURE Waste Infrastructure 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.

Insiders At SECURE Waste Infrastructure Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at SECURE Waste Infrastructure. Not only was there no selling that we can see, but they collectively bought CA$1.9m worth of shares. This is a positive in our book as it implies some confidence.

Does SECURE Waste Infrastructure 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. It appears that SECURE Waste Infrastructure insiders own 1.8% of the company, worth about CA$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The SECURE Waste Infrastructure Insider Transactions Indicate?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. We don't take much heart from transactions by SECURE Waste Infrastructure insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing SECURE Waste Infrastructure. Every company has risks, and we've spotted 2 warning signs for SECURE Waste Infrastructure (of which 1 doesn't sit too well with us!) you should know about.

Of course SECURE Waste Infrastructure 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.